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 is likely to take actions that will reduce regulation for the MBS and ABS markets. Industry participants are working to shape the actions while also staying nimble.

The settlement comes after the Supreme Court refused to hear a case in which the Third Circuit found that NCSLT were a “covered person” under the Dodd-Frank Act and subject to the CFPB’s oversight.