The CFPB won't look the same, but also won't be eliminated, according to the DOJ.

The actual impact of the EO "may be limited," according to Ian Katz, managing director at Capital Alpha Partners.

All work at the CFPB, including supervision and examination activities, has ceased following an order by the bureau’s new acting director. Several rulemakings are also on pause.

The stay for now only applies to some lenders. But a pending court ruling in a Kentucky lawsuit against the bureau’s Section 1071 rule could stay compliance with the rule for all covered entities.

Former FDIC board member Jonathan McKernan has been nominated to head the CFPB. Meanwhile a new acting director shut down all agency activities, spurring staff protests and lawsuits.

Jonathan McKernan, the CFPB nominee, was a member of the FDIC board from 2023 until he resigned earlier this week.

The pause was ultimately rescinded following court injunctions. In the meantime, participants in government-insured mortgage programs faced uncertainty.

The changes were set to take effect Feb. 5. Instead, HUD instituted a 90-day delay to review the final rule developed by the Biden administration.

The Trump administration has initiated an effort to end leases on office space used by the federal government. Some properties in commercial MBS have government leases but few deals face elevated exposures, according to S&P.

CFPB Director Rohit Chopra made a reputation as an aggressive and active regulator, going after bank overdraft charges, credit card late fees and big nonbanks’ wallet apps.