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D.C. Court holds up CFPB staff purge, sets hearing date
Posted Date: Tuesday, February 18, 2025
The D.C. District Court pushed back against the Trump administration’s effort to gut the Consumer Financial Protection Bureau (CFPB) of nearly all its staff, following multiple legal filings attempting to halt – or at least slow – the systematic dismantling of the agency.
Dodd Frank Update caught up with former CFPB Senior Counsels Rich Horn, co-managing partner at Garris Horn LLP, and David Friend, owner of Friend Mortgage Consulting, about the latest batch of developments at the bureau.
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Senate grills McKernan during CFPB confirmation hearing
Posted Date: Friday, February 28, 2025
Jonathan McKernan, the Trump administration’s nominee to become the next permanent director of the Consumer Financial Protection Bureau, faced some unique lines of questioning during his confirmation hearing before the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
In addition to inquiries about his policy positions, he also attempted to answer for how he plans to lead an agency the administration seems to be trying to dismantle.
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FHFA nominee tells Senate he favors reducing ‘useless’ regulations to promote affordable housing
Posted Date: Friday, February 28, 2025
Bill Pulte emphasized his family’s successful legacy in the mortgage industry during his confirmation hearing before the Senate Committee on Banking, Housing, and Urban Development. The Trump administration’s pick to run the Federal Housing Finance Agency fielded questions about his plans for achieving his top priority, if confirmed – “to strengthen and safeguard the housing finance system.”
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HUD secretary terminates AFFH rule to cut red tape
Posted Date: Friday, February 28, 2025
With the decision to terminate a 2021 interim final rule implementing key provisions of the Fair Housing Act, the U.S. Department of Housing and Urban Development (HUD) is following a similar policy path taken during the first Trump administration.
HUD Secretary Scott Turner announced the agency will attempt to cut “costly red tape” by stopping enforcement of the 2021 Affirmatively Furthering Fair Housing rule, calling it a “zoning tax” imposed on localities.
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Warren, Schiff demand DOGE staff vacate CFPB, inquire about conflicts of interest
Posted Date: Friday, February 28, 2025
Democratic Senate leaders demanded the Trump administration order staffers from the Department of Government Efficiency to vacate the Consumer Financial Protection Bureau, accusing their efforts to dismantle the bureau as a means of undermining consumer protections, particularly with respect to the evolving digital payments sector.
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CFPB dismisses lawsuit against Berkshire Hathaway mortgage subsidiary
Posted Date: Friday, February 28, 2025
The Consumer Financial Protection Bureau (CFPB) voluntarily dismissed a lawsuit it filed against Vanderbilt Mortgage & Finance, Inc., a subsidy of Berkshire Hathaway, in December, accusing the company of predatory lending practices that set families up for financial failure.
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CFPB drops Chopra action against Capital One
Posted Date: Thursday, February 27, 2025
The Consumer Financial Protection Bureau (CFPB) filed a notice of voluntary dismissal of its suit against Capital One, N.A., and its parent company, Capital One Financial Corp., for allegedly cheating millions of consumers out of more than $2 billion in interest.
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State AGs condemn Trump administration’s efforts to dismantle CFPB in court filing
Posted Date: Tuesday, February 25, 2025
Nearly half the states in the union filed a motion in federal court challenging the Trump administration’s efforts to defund and dismantle the Consumer Financial Protection Bureau.
Twenty-three state attorneys general argued the administration’s actions will harm consumers and threaten the nation’s financial stability by hindering enforcement of consumer protection laws intended to safeguard against a future financial crisis.
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Court lifts second injunction on CTA, meaning BOI reporting back in effect
Posted Date: Tuesday, February 25, 2025
Institutions subject to the Corporate Transparency Act will need to begin filing beneficial ownership information (BOI) in March following the latest court ruling on the matter, according to the Financial Crimes Enforcement Network. The D.C. District Court stayed the last injunction preventing enforcement of BOI requirements intended to help mitigate illicit business operations.
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Capital One, Discover shareholders approve acquisition proposal
Posted Date: Tuesday, February 25, 2025
Shareholders for Capital One Financial Corp. and Discover Financial Services voted nearly unanimously to approve proposed terms for a $35.3 billion acquisition agreement between two of the largest credit card companies in the country.
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Court dismisses 2012 suit against Rocket Mortgage over appraisals
Posted Date: Tuesday, February 25, 2025
The Fourth Circuit Court of Appeals in West Virginia dismissed the majority of a $10.6 million judgment against Rocket Mortgage and its affiliate, Amrock LLC. The case involved claims questioning the companies’ handling of certain home value estimates included in refinance applications.
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New HUD secretary to cut staff, halt Equal Access Rule enforcement
Posted Date: Tuesday, February 25, 2025
The first directive issued by U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner was to halt enforcement of a 2016 rule designed to ensure equal access to HUD-funded programs and shelters for individuals in accordance with their gender identity in programs and shelters. He then announced plans to cut HUD’s staff by 50 percent, according to media reports.
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OIG: Federal Reserve Banks met revised redlining timing goals
Posted Date: Tuesday, February 25, 2025
After reviewing the Federal Reserve System’s efforts to implement revised timing goals for submitting and reviewing high-risk redlining cases, the Federal Reserve’s Office of Inspector General concluded no recommendations were necessary for improvement.
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Regulatory Roundup: SEC launches new cyber unit, FHA appoints new deputies
Posted Date: Tuesday, February 25, 2025
The Trump administration has made a number of leadership changes and announced the creation of some new offices within existing federal agencies during its first month in power. In this Regulatory Roundup, catch up on some of the changes that have received less attention but provide valuable insight into the administration’s priorities.
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Financial trades push for overdraft rule nullification in Congress, courts
Posted Date: Tuesday, February 25, 2025
The financial services industry and Republicans have launched coordinated efforts to nullify the Consumer Financial Protection Bureau’s rule on overdraft fees. Meanwhile, bills introduced in the House and Senate proposing to repeal the overdraft rule have received strong support expressed by many of the same organizations.
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Industry insiders bullish on CFPB director nominee amid agency work stoppage
Posted Date: Tuesday, February 18, 2025
Former Federal Deposit Insurance Corp. Director Jonathan McKernan is the Trump administration’s third pick to run the Consumer Financial Protection Bureau (CFPB) since the firing of Rohit Chopra Feb. 1. The financial services industry and former CFPB attorneys are bullish about the nomination amid the agency’s tumultuous leadership shuffle and halt in operations.
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DOJ files appeal against CTA injunction
Posted Date: Tuesday, February 18, 2025
A district court ruling halting enforcement of the Corporate Transparency Act’s Beneficial Ownership Information reporting requirement is being appealed by the U.S. Department of Justice in hopes of reversing the decision.
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Federal Reserve releases biannual monetary policy report
Posted Date: Tuesday, February 18, 2025
The Federal Reserve’s biannual Monetary Policy Report read like a “good news, bad news” scenario for economists and mortgage professionals. Despite positive economic growth and stabilization in the real estate sector last year, early inflation numbers and other factors could hang question marks around potential rate cuts.
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Trump OCC nominee elicits confidence from financial services industry
Posted Date: Tuesday, February 18, 2025
President Donald Trump nominated former Senior Deputy of the Office of the Comptroller of the Currency (OCC) Jonathan Gould to take over as head of the banking agency. The financial services industry expressed support for the nomination, given his tenure as a federal regulator and more than a decade of private sector experience.
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Federal Reserve releases updated stress test scenarios for 2025
Posted Date: Tuesday, February 18, 2025
The Federal Reserve released a list of hypothetical scenarios to be used in its annual stress testing, designed to ensure that large banks can withstand the effects of a severe economic downturn. This year’s stress tests will simulate a major dip in housing prices, among other adverse market conditions.
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Republicans seek to repeal CFPB 1071 rule with legislation
Posted Date: Tuesday, February 18, 2025
Congressional Republicans expressed support for legislation to repeal the Consumer Financial Protection Bureau’s small-business lending rule implementing Sec. 1071 of the Dodd-Frank Act. The action came shortly after the Fifth Circuit Court of Appeals decided to stay compliance deadlines associated with the rule’s expanded data collection requirements for lenders.
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Will CFPB become a zombie agency with Vought as acting director?
Posted Date: Tuesday, February 11, 2025
The Consumer Financial Protection Bureau’s operations were brought to an abrupt halt following President Donald Trump’s appointment of newly confirmed director of the Office of Management and Budget (OMB), Russ Vought, as the bureau’s new acting director. Former CFPB Senior Counsels Richard Horn and David Friend told Dodd Frank Update what this could mean for the agency’s future.
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Fifth Circuit stays 1071 rule compliance after CFPB declines to litigate
Posted Date: Tuesday, February 11, 2025
Many financial services institutions will not have to comply with data collection requirements detailed in the Consumer Financial Protection Bureau’s (CFPB) small business lending rule following a federal court decision. The court was scheduled to hear oral arguments in the case Feb. 3 but canceled the hearing after new leadership at the CFPB declined to defend the rule.
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California regulators fine credit union after ransomware attack
Posted Date: Tuesday, February 11, 2025
Following an investigation into a June 2024 ransomware attack against Patelco Credit Union, California’s Department of Financial Protection and Innovation issued a consent order citing cybersecurity deficiencies.
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Two mortgage lenders plan to expand coverage through ‘strategic alignment’
Posted Date: Tuesday, February 11, 2025
A pair of mortgage lenders announced a “strategic alignment” to enable the combined company to offer residential home loans across the country. One has an established presence in the Midwest and on the East Coast while the other primarily serves the Pacific Northwest.
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Attorneys break down legal implications of CFPB pause on litigation proceedings
Posted Date: Friday, February 7, 2025
The suspension of several pending litigation matters by the Consumer Financial Protection Bureau (CFPB) could hold major implications for cases challenging the agency’s rulemaking activities and cases attempting to redress harmed consumers.
Dodd Frank Update spoke with three attorneys about the potential impact of acting director U.S. Treasury Secretary Scott Bessent’s decision to withdraw the CFPB’s legal defense staff from these proceedings.
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Mortgage industry reacts to HUD secretary confirmation
Posted Date: Friday, February 7, 2025
The U.S. Senate voted 55-44 along party lines to confirm Scott Turner as the new secretary of the U.S. Department of Housing and Urban Development. The largest trade organization representing the mortgage industry issued a statement regarding President Donald Trump’s new cabinet member.
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SEC fines LPL Financial $18 million for AML failures
Posted Date: Friday, February 7, 2025
The Securities and Exchange Commission cited multiple failures in LPL Financial LLC’s anti-money laundering program in a cease-and-desist order calling for the investment advisor to pay an $18 million civil money penalty and to make documented improvements to its fraud mitigation policies and procedures.
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New NCUA chair prioritizes reducing compliance costs
Posted Date: Friday, February 7, 2025
President Donald Trump appointed National Credit Union Administration (NCUA) Vice Chairman Kyle Hauptman to become the 13th NCUA board chair. Hauptman indicated he is against regulation by enforcement and is concerned with reducing compliance costs for covered institutions.
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Regulatory Roundup: FINRA publishes reg oversight report, agencies seek public input for reg review
Posted Date: Friday, February 7, 2025
Regulations issued by federal agencies are under intense political scrutiny under the Trump administration, but regulatory bodies also have continued to conduct their own, regularly scheduled regulatory assessments. Learn what measures these organizations are taking to determine the effectiveness of the current policy framework governing financial institutions in this regulatory roundup.
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Bipartisan bill to cap credit card APRs receives industry pushback
Posted Date: Friday, February 7, 2025
Bipartisan legislation seeking to establish a five-year annual percentage rate cap for credit cards met with strong pushback from organizations representing banks and credit unions. The bill aligns with a campaign promise by President Donald Trump calling for a 10 percent cap on credit card interest rates.
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Trump invokes FVRA to install acting CFPB director after Chopra firing
Posted Date: Tuesday, February 4, 2025
The question of when President Donald Trump would fire Rohit Chopra from his post as director of the Consumer Financial Protection Bureau was answered on Feb. 1. Following the highly anticipated move, Trump named newly confirmed U.S. Treasury Secretary Scott Bessant as the bureau’s acting director.
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CTA compliance remains optional despite Supreme Court ruling
Posted Date: Tuesday, February 4, 2025
An injunction filed in a Texas district court is looming over the Corporate Transparency Act (CTA) despite the Supreme Court’s decision overturning a substantially similar injunction in January. As a result, compliance with the CTA will remain optional until further notice.
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CFPB fines Wise $2.5 million for allegedly misleading remittance fees
Posted Date: Tuesday, February 4, 2025
During the last week of Rohit Chopra’s tenure as director of the Consumer Financial Protection Bureau, the agency ordered the international remittance company Wise to pay almost $2.5 million to settle claims it had misled U.S. consumers about a variety of fees and failed to issue timely refunds when warranted.
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FDIC approves first bank merger under acting chair
Posted Date: Tuesday, February 4, 2025
Days after he was appointed acting chair of the Federal Deposit Insurance Corp., Travis Hill oversaw the agency’s first approval of a merger agreement under his watch. The federal banking regulator approved WesBanco Bank, Inc.’s Bank Merger Act application to acquire and merge with Premier Bank to create a regional financial services institution with approximately $27 billion in total assets.
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Industry, consumer advocates react to CFPB leadership change
Posted Date: Tuesday, February 4, 2025
Industry stakeholders and consumer advocates voiced differing opinions about the latest change in leadership at the Consumer Financial Protection Bureau, after President Donald Trump fired Director Rohit Chopra and named newly-confirmed U.S. Treasury Secretary Scott Bessent to the acting director role.
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Republicans seek to defund CFPB with bills introduced to House, Senate
Posted Date: Tuesday, February 4, 2025
The Consumer Financial Protection Bureau’s statutory funding cap is in the crosshairs of legislation introduced by Sen. Ted Cruz (R-Texas). The “Defund the CFPB Act” would reduce the bureau’s budget allocated by the Federal Reserve to $0, effectively eliminating the agency. Rep. Keith Self introduced companion legislation in the House.
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CFPB future uncertain as industry awaits Trump appointee
Posted Date: Friday, January 31, 2025
For the second time in eight years, the financial sector will witness the Consumer Financial Protection Bureau undergo a change in leadership at the hands of President Donald Trump – provided somebody wants the job.
Dodd Frank Update spoke with multiple industry insiders about what challenges the administration could be facing in finding a new leader for the bureau and where doing so likely ranks on its priority list.
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What lenders, borrowers should know about force-placed insurance
Posted Date: Friday, January 31, 2025
The devastating wildfires in Southern California have drawn significant attention to the insurance sector, where rates have been rising for years. Many insurers have refused to renew homeowner’s insurance policies for homeowners in areas at high risk for natural disasters.
Gretchan Francis, managing director at InsureMAC, spoke with Dodd Frank Update about the impact of rising rates on borrowers, and what happens when borrowers lose their homeowner’s insurance.
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First Busey Corp. gets green light to merge with CrossFirst Bankshares
Posted Date: Friday, January 31, 2025
First Busey Corp. received regulatory approval to move forward with plans to merge with CrossFirst Bankshares Inc., including the indirect acquisition of CrossFirst’s subsidiary bank. The combined entity will operate under the Busey brand and have approximately $20 billion in total assets.
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Federal Reserve releases FOMC statement on maintaining interest rate
Posted Date: Friday, January 31, 2025
The Federal Open Market Committee (FOMC) statement, released Jan. 29, explained the Federal Reserve’s decision to maintain the federal funds rate at a target range between 4-1/4 to 4-1/2 percent. The FOMC pointed to indicators concerning the labor market and inflation as the basis for its decision.
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