» CFPB Shake-Up: Director Chopra Fired, Acting Director Bessent Orders Immediate Freeze

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CFPB Shake-Up: Director Chopra Fired, Acting Director Bessent Orders Immediate Freeze

February 8, 2025

Last Saturday, CFPB Director Rohit Chopra was fired, and Treasury Secretary Scott Bessent was named Acting Director. This marks a significant shift in leadership, with the Trump administration moving quickly to change the direction of the bureau’s policies and activities. In his first public statement as Acting Director, Bessent stated:

“I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth.”

His remarks suggest a policy shift that could bring about regulatory rollbacks and a more business-friendly approach at the CFPB.

1.CFPB Staff Ordered to Halt Most Activities

One of Bessent’s first actions as Acting Director was to issue an immediate directive halting nearly all CFPB operations. According to reports from Bloomberg and NPR, CFPB staff have been ordered to stop all rulemaking, litigation, enforcement actions, and public communications unless expressly approved by Bessent or required by law. Additionally, the CFPB has been instructed to pause participation in legal proceedings, except to seek case delays, and to suspend the effective dates of any final rules that had not yet gone into effect. Investigations and settlement negotiations have also been put on hold, and agency staff have been directed not to release any research papers or press statements. These sweeping measures signal a significant slowdown in the CFPB’s activity and suggest a broader policy shift under the new administration.

2.What This Means for the Industry

The halt in CFPB activity signals a potential shift toward deregulation and reduced oversight of financial institutions. While mortgage lenders and brokers may see immediate relief from regulatory pressure, uncertainty remains about the CFPB’s long-term direction.

Industry experts anticipate that the Trump administration will work to curtail the CFPB’s regulatory authority, possibly limiting its enforcement reach and scaling back certain policies enacted under Chopra’s leadership. However, it is still unclear whether Bessent will remain as Acting Director for an extended period or if another interim leader will be appointed.

3.Will State Attorneys General Step In?

One major question is whether state regulators will fill the gap left by a less active CFPB. Historically, several state attorneys general—especially in states with strong consumer protection laws—have taken independent action to enforce financial regulations. If the CFPB significantly scales back enforcement, we could see states stepping up their oversight of mortgage lending and other financial services.

Several states have already indicated their willingness to take an aggressive approach to consumer protection, particularly in areas such as fair lending, servicing practices, and financial product disclosures. The coming months will reveal whether states ramp up their enforcement efforts in response to the CFPB’s shift in focus.

4.Bottom Line

The firing of Director Chopra and the subsequent freeze on CFPB activities mark a pivotal moment in the agency’s trajectory. While the full impact of these changes is still unfolding, it is clear that regulatory oversight is being significantly curtailed in the short term.

For mortgage professionals, this could mean fewer immediate compliance burdens, but it also introduces uncertainty about the long-term regulatory landscape. As the Trump administration continues to reshape the CFPB, mortgage lenders and brokers should stay informed about potential policy changes and state-level enforcement trends.