1.Senate Confirmation Hearing Set for CFPB & FHFA Leadership

On Thursday, February 27, the Senate Banking Committee will review the nominations of:

♦ Jonathan McKernan – Nominee for Director of the CFPB

♦ Bill Pulte – Nominee for Director of the FHFA

The hearing will also consider two other nominees, meaning it may not dive deeply into major policy debates. However, we expect senators to focus on two critical topics:

1. The Future of GSE Conservatorship – Bill Pulte is likely to be asked about his position on ending Fannie Mae and Freddie Mac’s conservatorship, a topic that has remained a major policy issue in Washington.
2. CFPB Deregulation – Jonathan McKernan will likely face questions on how far he intends to scale back regulatory enforcement at the CFPB, especially in light of the Trump Administration’s broader deregulatory agenda.

If no significant delays arise, McKernan’s confirmation process could take about 30 days. We’ll provide a full breakdown of the hearing’s key takeaways in next week’s update.

2.Mark Calabria Joins OMB, Temporarily Assigned to CFPB

In a move that signals the White House’s increasing control over regulatory agencies, former FHFA Director Mark Calabria has been hired at the Office of Management and Budget (OMB) and assigned to the CFPB until McKernan is confirmed. Calabria, who led the FHFA during Trump’s first term, has extensive experience shaping housing and mortgage policy, having previously served as:

♦ Chief Economist to Vice President Mike Pence

♦ Senior Professional Staff on the Senate Banking Committee

♦ Deputy Assistant Secretary for Regulatory Affairs at HUD, where he oversaw RESPA

Calabria has long been a proponent of reducing regulatory burdens in mortgage lending. In an interview with HousingWire last year, he stated: “I don’t think the CFPB is going away — as much as that would be nice. But I do think you are going to see a difference in the stance, which will matter in the mortgage industry, in terms of enforcement and obligations… Writ large on compliance and regulatory costs, Trump’s CFPB will be considerably lower.”

This suggests that under McKernan’s leadership, the CFPB will focus enforcement on clear statutory violations rather than discretionary regulatory policies, potentially reducing compliance costs for mortgage lenders.

3.Calabria’s Role in White House Efforts to Overhaul Independent Agencies

Calabria’s appointment at OMB may go beyond just a temporary CFPB assignment. Reports from Washington Post’s Andrew Ackerman and Punchbowl News’ Brendan Petersen suggest that he has been tasked with bringing independent agencies under closer White House oversight—a move aligned with Trump’s recent executive orderaimed at reining in independent regulators.

The executive order specifically targets:

♦ Consumer Financial Protection Bureau (CFPB)

♦ Federal Trade Commission (FTC)

♦ Federal Communications Commission (FCC)

♦ Securities and Exchange Commission (SEC)

♦ Federal Reserve

The order states: “Now they will no longer impose rules on the American people without oversight or accountability.”

If fully implemented, this directive could significantly change the way regulatory agencies operate, giving the White House more direct control over rulemaking and enforcement priorities.

The coming weeks will be critical in determining the direction of regulatory oversight. We will continue to monitor these developments and provide insights following next week’s Senate confirmation hearing.