Congressional Republicans have advanced efforts to reduce the Consumer Financial Protection Bureau’s budget by nearly half, reflecting a continuation of their broader push to reform the agency’s scope and funding structure. While an initial attempt to defund the CFPB entirely was blocked, a revised proposal capping the bureau’s draw from the Federal Reserve at 6.5% was approved by the Senate parliamentarian, setting the stage for deeper funding cuts.
PBG’s Peter Idziak spoke with several news outlets about the implications of these proposed changes on the bureau’s operations.
“The real focus is you have Russ Vought who has requested zero dollars for the most recent appropriations,” said Idziak. “It’s unclear how much the max cap changing would really affect the day-to-day operations of the CFPB right now.”
“The Dodd-Frank Act does allow state attorneys general to enforce the consumer financial protection laws, and several states have increased resources in that space, and the industry itself does a fair bit of policing.”
“Lenders should focus on what the actual laws and regulations are in force…to the extent that you know the laws and regulations are still on the books; clients should still follow them.”
Peter’s commentary can be found in the following media outlets:
- Inside Mortgage Finance: Planned Cut to CFPB Fed Funding Thwarted
- American Banker: What the big, beautiful bill now has in store for the CFPB
- National Mortgage News: States lay groundwork for post-CFPB oversight
- Mortgage Professional America: How the latest shakeup at the CFPB could impact mortgage brokers
- Mortgage Professional America: CFPB could be eyeing LO compensation, mortgage servicing rule changes