Judge Amy Berman Jackson said the evidence in the lawsuit makes it clear that the Trump administration has no intent of operating the CFPB at all.

The move could set a dangerous precedent, according to Adam Rust, director of financial services at the Consumer Federation of America.

The preliminary injunction only applies to workers who live or work in Washington, DC, and the 19 states that sued the Trump administration over the mass layoffs of probationary employees at 18 federal agencies.

FHFA directed the GSEs to end their SPCPs, prompting renewed concerns that the Trump administration could take further actions to limit special purpose credit programs in the mortgage market.

Terminated federal probationary employees will soon be offered their jobs back if they live or work in Washington, DC or one of the 19 states that sued the Trump administration.

The injunction is in place until the court resolves the lawsuit brought by the NTEU. The Trump administration appealed the order.

Bureau officials who voluntarily resigned recently include Mark McArdle, assistant director of mortgage markets, and Gabriel O’Malley, deputy enforcement director for policy and strategy.

New CFPB leadership said the bureau’s investigation into Townstone was not prompted by any actual harm, but by quota-style statistics.

A decision is expected no later than April 1, regarding a potential preliminary injunction that would prevent future mass terminations.

The judge said the court is “mindful that its order must be sufficiently specific to be enforceable..."