HousingWire Daily Matthew VanFossen on how lenders are reacting to changes at the CFPB
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Feb 13, 2025 Matthew VanFossen, CEO of Absolute Home Mortgage, shares his expert insights on the shifting landscape of mortgage lending amid changes at the Consumer Financial Protection Bureau (CFPB). He discusses the confusion from leadership changes and the significance of compliance despite a pause in enforcement. VanFossen highlights the potential risks of a regulatory vacuum and the varying state-level enforcement. He also emphasizes the necessity for engagement with lawmakers and the importance of robust compliance programs to maintain stability in the industry.
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CFPB Leadership Turnover
- The rapid succession of three CFPB directors in 10 days suggests a lack of a permanent plan.
- It appears the initial intention might have been to eliminate the CFPB entirely.
Regulations Remain
- Lenders should remember that existing regulations remain in effect despite changes at the CFPB.
- The absence of enforcement doesn't negate laws like the SAFE Act or Dodd-Frank.
State Regulatory Scrutiny
- With reduced federal oversight, state regulators may increase enforcement of federal regulations.
- This shift could lead to inconsistencies and a heavier burden on lenders operating across multiple states.