The DOJ in a court filing accused the CFPB employee union of twisting a stop work order at the bureau as being part of a “coordinated campaign” by the Trump administration to eliminate the CFPB.

Financial entities who fail to comply with the Home Mortgage Disclosure Act’s requirements are at risk of enforcement actions by a future Democratic administration or at the state level.

The bureau had alleged that the California-based short-term loan company disguised fee payments as “tips” or “donations.”

Work may have ceased temporarily at the CFPB while the regulator undergoes leadership changes, but lenders are advised that Home Mortgage Disclosure Act reporting requirements remain in effect.

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.