T
he Consumer Financial Protection Bureau's (CFPB) future remains uncertain as employees describe efforts to dismantle the agency. In other Washington news, HUD scraps a Biden-era rule and FHFA nominee discusses privatization.
Key points:
* Acting CFPB director Russell Vought denies plans to shutter the agency, but employee accounts suggest otherwise.
* NAR supports Jonathan McKernan's confirmation as CFPB director, while the agency drops several major cases.
* HUD revokes a controversial fair housing rule, and FHFA nominee Bill Pulte discusses privatization of GSEs.
The CFPB's fate is unclear, with conflicting statements suggesting it will either be "streamlined" or "wound down." Court documents in a lawsuit filed by the National Treasury Employees Union have offered clues about the agency's future. Acting director Russell Vought claims Trump's nomination of Jonathan McKernan as new director and subsequent confirmation hearings are inconsistent with allegations of dismantling the CFPB.
However, a subsequent filing includes testimony from CFPB employees that appears to validate concerns about the agency being gutted. One staffer described meetings where plans were outlined to "wind down" the CFPB and "carry out the closure of the agency." The staffer testified that employees would be eliminated in three phases, starting with probationary employees.
NAR supports McKernan's confirmation as director, describing him as "uniquely suited" for the position. Multiple CFPB claims have been dropped, including a suit against Capitol One claiming the bank cheated customers out of over $2 billion in interest.
The Trump administration has revoked a rule proposed by HUD in 2023 aimed at reducing housing discrimination. The Affirmatively Furthering Fair Housing rule had faced controversy and was never finalized under the previous administration.
FHFA nominee Bill Pulte discussed privatization of Freddie Mac and Fannie Mae, stating that any efforts must be "carefully planned" to ensure the safety and soundness of the housing market without upward pressure on mortgage rates.
