By Ari Karen
The reality is that without a filibuster proof majority, a repeal of Dodd Frank and dissolution of the CFPB is unlikely. Indeed, any changes to the CFPB will need some level of bipartisan support. Even the appropriations tricks that cut off funding will not work based on the CFPB’s construction (Obama thought of that already). Hence, the end of the CFPB and Dodd Frank is not imminent.
What could change however are some of the most aggressive policies of the CFPB. Regulation by enforcement, ex post facto enforcement, and ever increasing expansion of “unfair and deceptive” are things that could change under new CFPB leadership appointed by President Trump. In addition, a more business friendly attitude in making enforcement decisions and in terms of investigation could potentially be on the distant horizon. However, lenders should not believe that the CFPB is going to be headed by a patsy nor that the current government career staff are simply going to lay down their arms. While I believe that what most lenders see as the most “abusive” aspects of the CFPB could soon be in the past, do not expect things to return to the “good old days”. The CFPB is here to stay (along with the other regulatory bodies Trump cannot so easily control). Thus, while relief may be in sight, it will not take the form of anything predating the CFPB’s creation or President Obama’s election.
To read the article on National Mortgage News, click here.