CFPB announces drastic shift in focus
Published by: Sean Brown
April 30, 2025 | Regulatory
Creating and protecting a level playing field in the financial services industry is vital to ensure that Ohio credit unions can serve members fairly, safely, and securely. But what happens when changing political tides shift the pendulum from one extreme of the regulatory spectrum to the other without warning? That is precisely what’s playing out right now with the operational viability of the Consumer Financial Protection Bureau (CFPB). Just a few short months ago, the CFPB was one of the most progressive — and aggressive — federal rulemaking agencies. However, the agency has swiftly been reduced to a level where industry still questions what the future of the CFPB may look like. However, just when it started to look like the “lights were on and no one was home,” the CFPB released its 2025 priorities, including:
- Reduction in Supervisory Exams: The Bureau will decrease the overall number of supervisory exams by 50% to reduce consumer prices and the cost of running businesses.
- Shift Back to Depository Institutions: In 2012, 70% of the Bureau’s supervision focused on banks and depository institutions, but this has since changed, with over 60% of examinations performed on nonbanks.
- Focus on Actual Fraud: The Bureau will prioritize cases involving actual fraud against consumers with identifiable victims and measurable damages.
- Redress for Tangible Harm: The CFPB will focus on getting money back directly to consumers rather than imposing penalties to fill the Bureau’s penalty fund.
- Support for Service Members and Veterans: The Bureau will prioritize providing redress to service members, their families, and veterans.
- Respect for Federalism: The Bureau will deprioritize participation in multi-state exams unless required by statute and minimize duplicative enforcement where state regulators are already engaged.
- Coordination with Other Federal Agencies: The CFPB will eliminate duplicative supervision and coordinate exam timing with other federal regulators.
- Avoidance of Novel Legal Theories: The Bureau will not pursue supervision under novel legal theories and will focus on areas clearly within its statutory authority.
- Fair Lending Enforcement: The Bureau will not engage in redlining or bias assessment supervision based solely on statistical evidence. It will pursue matters with proven intentional racial discrimination and identified victims.
The CFPB’s new priorities reflect a significant shift in focus, emphasizing collaboration with supervised entities, reducing regulatory burdens, and targeting tangible consumer harms. The League will continue to monitor how these priorities begin to manifest into reality.
Contact Sean Brown for questions or assistance.
