04/13/2026
I've spent over 30 years in mortgage lending. I've watched regulations come and go. But what's happening right now with the CFPB deserves every lender's full attention — not just as a compliance issue, but as a consumer protection crisis.
Here's what has happened since February 2025:
🔴 67 guidance documents rescinded in a single day — rules that shaped fair lending compliance for over a decade
🔴 Disparate impact liability proposed for elimination under ECOA and Regulation B — directly affecting how we document and defend lending decisions
🔴 Mortgage-related consent orders terminated early against multiple lenders
🔴 CFPB enforcement dropped sharply — shifting oversight responsibility to state attorneys general
🔴 Special Purpose Credit Programs (SPCPs) significantly restricted — programs that helped underserved borrowers access homeownership
🔴 The agency's budget cut from $823M to roughly half — limiting its capacity to function at all
For lenders, this creates a dangerous illusion of freedom.
Fewer federal rules does not mean fewer risks. It means your exposure has shifted — from federal enforcement to state-level action, private litigation, and reputational damage. States like California, New York, Illinois, and Massachusetts are already stepping into the gap with their own enforcement.
For borrowers — especially first-time buyers, seniors, and underserved communities — this rollback removes the primary watchdog that stood between them and predatory practices. The CFPB has returned $21 billion to consumers since 2011. That pipeline is being dismantled in real time.
As someone who has also spent time as a consumer fraud investigator and advocate, I can tell you: when the regulatory floor disappears, the fraud floor rises.
What this means for your lending practice right now:
✅ Review your fair lending program against both federal AND state standards
✅ Don't assume rollback = permission — consumer protection laws remain enforceable through courts
✅ Document everything. Private litigation is accelerating where federal enforcement has retreated
✅ Watch your state AG's office — they are the new enforcement front line
The rules may be changing. The responsibility isn't.
I'd love to hear how other lenders are navigating this shift. Drop a comment below.
