Democrats vow to fight the move to “illegally “delete” the popular consumer watchdog, which enjoys widespread bipartisan support of four of the five Americans.
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The Consumer Financial Protection Agency is the latest battlefield in the Trump administration’s lightning campaign to reduce the federal government, with the new representative director at the bureau vowing over the weekend, cutting off funds and suspending investigations pending employees Instructs to stop.
President Trump fired Rohit Chopra, the Biden administration’s CFPB director, on February 1st. Project was confirmed by the Senator on February 6, 2025 as the Director of the Budget.
Russ Vert
On Saturday, Vought posted on Twitter that he was blocking CFPB funds. Officers were notified via email on Saturday night, and have suspended pending investigations and stopped work, including overseeing the regulated companies, NPR reported.
In accordance with the Consumer Financial Protection Act, I have notified the Federal Reserve that the CFPB will not acquire the next draw of unusual funds as it is “not reasonably necessary” to carry out its obligations. In the current fiscal environment, the department’s current $716.6 million balance is actually excessive. This spigot, which has long contributed to the inexplainability of the CFPB, is now off.
– russ vought (@RussVought) February 9, 2025
Elon Musk’s Government Efficiency Team (DOGE) accessed CFPB’s internal computer systems on Friday and managed the CFPB’s website, NPR reported.
Democrats have vowed to defend the bureau, with 81 House Democrats writing Treasury Secretary Scott Bescent on Friday to protest the Trump administration’s move, with the popular consumer watchdog being 5 It enjoys widespread bipartisan support from four of the Americans. ”
Sen. Elizabeth Warren (D-MA) – the longtime champion of the department that opposed previous attempts to gut or limit it – said Monday that only Congress has the power to close the CFPB.
“Congress has created the Consumer Financial Protection Bureau, but not the president, and not the president, they cannot illegally close jobs,” Warren posted Monday on Musk’s social media platform X. And we will not give up in Congress, in court or in public until we win this battle. ”
Created by Congress in the aftermath of the Great Recession brought about by the collapse of subprime mortgages in 2007-2009, the CFPB is a central bank, mortgage lenders, and other financial institutions and service providers who record policies. It’s a consumer watchdog.
This includes checks and savings accounts, credit cards, credit reports, debt collection, remittances, mortgages, payday loans, personal loans, prepaid debit cards, student loans, vehicle loans or leases.
The CFPB homepage displayed a “404: Page Not Found” error on Monday, but the bureau’s consumer complaints database (a source of past complaints for many financial institutions) remained accessible.
The CFPB says it forwards the approximately 25,000 complaints it receives from consumers each week to financial services companies. The form for filing the complaint was still published Monday.
“CPFB was created after excessive risk-taking by financial companies, many of which were not overseen by federal regulators, causing us to crash our economy,” said Adam Last, a US consumption. The Federation of Representatives said in a statement Monday. “Millions of people have lost their homes, jobs, savings and businesses. It was created to protect Elon Musk, not to empower them. This administration has taken a look from the facts. People will be harmed if they choose to cover it. This is a free pass for financial institutions to take advantage of consumers.”
However, critics in the lending and financial services industry have accused the CFPB of exaggerating its authority and have sought it to be thwarted.
When the CFPB claimed a rocket mortgage in December for violating the Real Estate Settlement Procedures Act (RESPA), which allegedly paid a kickback to a real estate broker, Rocket said that Chopra “put his political agenda before the change in management.” He accused him of engaging in transparent ploys to strengthen the system. A reckless and shocking misuse of public resources.”
[Rocket denies violating RESPA and the case has not been litigated.]
In building housing opportunities and risks for the second Trump administration, David Dwillin, president and CEO of the National Housing Conference, has announced that he will be a potential trade war with China, deporting construction workers and investing in single-family rental housing. He admitted he was worried about tax penalties for his home.
However, he welcomed the prospects for new leadership at the CFPB, calling Chopra “an outspoken opponent of the banking industry and a lightning bolt for the financial services industry. The new leadership at the CFPB will complete the first year. I hope that almost every action that Coach Chopra had done before will be abolished.”
“My hope is that new leadership at the CFPB will build a broad consensus for its actions and narrow the pendulum path, where every four years, costing millions of dollars of financial institutions per change in administration. “Dworkin wrote shortly after the election.
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