The ruling by the appeals court allows the Trump administration to proceed with massive layoffs at the bureau. One of the three judges to hear the case dissented, arguing that the courts are shifting power from Congress to the executive branch.
Despite the Trump administration’s efforts to defang the CFPB, securities market participants are wary the regulator still could crack down on malfeasance with a vengeance should political tides turn.
The Trump administration has delayed compliance with the rule until mid-2026 at the earliest and the CFPB is working to revise the Biden-era requirements. Trade groups representing lenders provided plenty of suggestions to reduce burdens from the rule.
The bureau is considering raising the bar for triggering oversight of nonbanks in consumer reporting, consumer debt collection, automobile lending and international money transfers.
The settlement is tied to practices Cypress engaged in while operating as a direct mortgage servicer under the name Rushmore. Cypress has since rebranded as a master loan servicer.
The GAO alleged that the CFPB acting director’s decision not to request full funds available from the Federal Reserve constituted an illegal withholding under the Impoundment Control Act.
The Bank Policy Institute and others stressed that industry participants shouldn’t have to comply with a rule given that the CFPB plans to substantially revise it.
The trade group said the Appraisal Modernization Act would limit lenders’ ability to help consumers during changing market conditions and create legal and operational issues for mortgage lenders.
Amid litigation and disagreements among industry participants over the Section 1033 open banking rule, the CFPB said it will soon issue a revised version of the rule.
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