On The Market Is the Mortgage Industry Safe with CFPB Under Fire?
Mar 13, 2025
Chris Willis, a partner at Troutman Pepper and host of The Consumer Finance Podcast, delves into the crucial role of the CFPB in the mortgage industry. With the agency's operations halted amid a leadership shakeup, the discussion highlights potential shifts in regulations that could affect mortgage lending practices. Willis shares insights on the implications of possible changes under the Trump administration, including how these shifts may influence consumer protections and affect everyday banking fees. The stakes couldn't be higher for future homeowners!
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CFPB Origins
- The CFPB was created in 2010 after the subprime mortgage crisis.
- It consolidated consumer protection powers and expanded authority over non-bank lenders.
CFPB Powers
- The CFPB's powers extend beyond mortgages to areas like credit reporting and debt collection.
- It can act against practices it deems "unfair, deceptive, or abusive," giving it broad authority.
CFPB and Housing
- The CFPB influences housing through mortgage lending regulations, not directly as a housing regulator.
- These regulations, implemented after 2010, significantly changed the mortgage process and disclosures.
