U.S. Department of Treasury Secretary Scott Bessent puts the brakes on rule-making and enforcement as the Consumer Financial Protection Bureau faces defunding.
Dave Gallagher2 mins
With the installation of U.S. Department of Treasury Secretary Scott Bessent as acting director at the Consumer Financial Protection Bureau, it appears that activity at the agency is coming to a halt for now.
Several media outlets including Politico are reporting that Bessent has ordered staff to stop all rulemaking as well as activity around enforcement matters, including litigation. This change was taken "in order to promote consistency with the goals of the administration," according to an email from the office of the director obtained by Politico.
"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," Bessent said in a statement.
What this means in real estate: The pause in activity could have implications in the real estate industry.
The agency, which was created after the 2008 financial crisis to protect consumers, regulates and enforces rules on mortgages and other consumer financial products. It has fined companies including Freedom Mortgage for bad practices, including illegal kickbacks. Through the end of January, its action resulted in $5 billion in civil money penalties.
The appointment of Bessent was made after President Donald Trump fired Rohit Chopra, who was appointed to the position by Joe Biden and served in that role since October 2021. It is expected that Bessent will lead the agency until a full-time director is nominated and confirmed; however Republicans have also been actively working to defund the agency.
