While the bureau seems to be stepping away from an enforcement focus within the ABS market, industry attorneys note that a Third Circuit decision is still binding.
The Trump administration appears unlikely in the near-term to work on ending the conservatorships of the GSEs. And any potential moves will aim to limit disruptions in the mortgage market, according to officials in the administration.
The ABS backed by advances to international students studying in the U.S. could come under pressure due to any changes in immigration and employment policies.
The Trump administration’s planned reduction-in-force would terminate more than 1,400 employees at the bureau, reducing the agency’s workforce to around 200 employees.
The Trump administration is prohibited from firing more than 1,400 employees at the consumer agency, for now. The next hearing on the case is set for April 29.
The new preliminary injunction allows for the Trump administration to fire CFPB employees and issue a reduction-in-force to employees, as long as the administration abides by certain provisions.
An appeals court judge appeared to favor of authorizing a limited preliminary injunction against the Trump administration in a lawsuit brought by the National Treasury Employees Union.