Is the Mortgage Industry Safe with CFPB Under Fire?

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 13 March 2025

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

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Summary

Is the mortgage industry still safe? The Consumer Financial Protection Bureau (CFPB) has been ordered to halt all work while awaiting a new Trump-appointed director. While you may not often hear about this government agency, the CFPB plays a huge role in the mortgage industry and is the reason 2008-style lending practices have not been brought back to the market. With uncertainty surrounding the CFPB—will it be downsized, shut down, or remain unchanged?—many in the mortgage and real estate industries are concerned about what’s next. Chris Willis, host of The Consumer Finance Podcast, joins the show to share how the Trump administration is thinking of restructuring the CFPB and limiting the scope of its protections. Will the new CFPB director scale back some of the more inclusive mortgage lending practices or keep them the same? Could your bank account and credit card fees change due to a less strict CFPB directive, and what does this mean for YOU getting your next mortgage? This agency has bigger effects than many Americans realize, so we’re sharing what’s coming next. In This Episode We Cover The Consumer Financial Protection Bureau (CFPB) explained, what they do, and how they influence mortgage lending Why the Trump administration is taking aim at this agency and halting work The one piece of legislation protecting strict mortgage laws in America (could it be changed?) The difference between Biden-led and Trump-led CFPB initiatives How the CFPB affects your mortgages, credit cards, and bank accounts And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Sign Up for the On the Market Newsletter Find Investor-Friendly Lenders Dave's BiggerPockets Profile On The Market 300 - Mortgage Rates Hit 2025 Low as Recession Fears Rise The Consumer Finance Podcast Grab Dave’s Newest Book, “Start with Strategy” Jump to topic: (00:00) Intro (00:41) The CFPB Explained (04:52) Taking Massive Financial Action (07:48) How the CFPB Affects Mortgages (09:57) Will Trump Administration End It? (15:35) Scaling Back the CFPB (16:49) These Changes Affect Americans (20:06) What Investors Must Watch Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-303 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey everyone, I'm Dave Meyer and welcome to On the Market.
0:08.1	Today we're tackling the looming question.
0:10.6	What happens if the Consumer Financial Protection Bureau is dismantled or limited in scope and
0:16.2	what it means for the real estate industry?
0:18.5	Because if you're unaware, the CFPB played a big role in regulating
0:22.1	the mortgage industry after the 2008 crash, and changes could mean big changes for the mortgage
0:27.4	industry and housing market altogether. Joining me today is Chris Willis, partner at Troutman
0:32.7	Pepper and host of the Consumer Finance podcast to give his insights into how the CFPB's fate could reshape
0:39.3	real estate financing. Let's jump in. Chris, welcome to On the Market. Thank you for joining us today.
0:45.3	It's my pleasure. Thanks for having me on. I'm really excited about our discussion today.
0:48.6	Me too. I am eager to learn from you about this important topic. So I'm hoping we can start
0:53.9	with the origins of the CFPB.
0:57.0	Can you just tell us a little bit about when and how it was created?
1:00.0	Sure. It's a pretty new agency, actually. It didn't exist 15 years ago. It was created by a piece of legislation in 2010 called the Dodd-Frank Wall Street Reform and Consumer Protection Act,
1:12.6	or something like that. And that was a statute that Congress passed in 2010 in the aftermath
1:17.1	of the subprime mortgage crisis and the recession that we had starting in around 2008.
1:22.1	The Dodd-Frank Act was 2,000-plus pages long, but one portion of it created this new federal
1:26.8	agency called the Consumer
1:28.0	Financial Protection Bureau, and it was intended to do a couple of things. One is to transfer
1:33.9	the primary authority for consumer financial protection away from the federal banking
1:39.3	regulators who had had it prior and consolidated into a new agency, but also to give the agency powers over
1:45.8	non-bank consumer financial services companies too.
	...

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