The Washington Report

On Monday, February 3, Acting Director of the Consumer Financial Protection Bureau (CFPB) Scott Bessent ordered agency staff to pause work on a number of functions of the regulator, according to an internal email widely circulated in the media. The CFPB is the main enforcer of consumer-protection laws in the financial services space. This followed the dismissal of former director Rohit Chopra over the weekend and the announcement Monday that Bessent—who is also the current Treasury Secretary—would serve as Acting Director of the agency until a permanent Director can be confirmed.

Acting Director Bessent directed agency staff not to: propose or suspend rules; begin new investigations or settle enforcement actions; issue any external correspondence, including research; start any new employee contract negotiations; finalize any rules with upcoming effective dates; and make any filings in pending lawsuits.

In 2017, when President Trump appointed OMB Director Mick Mulvaney to serve as acting director, Mulvaney issued a more limited pause on agency work, which included a hiring freeze and a suspension of work on new rules. Monday’s order goes further but also leaves open questions regarding what actions the agency may still take with respect to other functions, such as consumer-complaint recourse and standard supervisory work. At this time, there is no indication that the agency's current consumer-protection rules do not apply or will not be enforced; many of the authorities are based in statute. However, rules could be contested via other statutes or changed by Congress. The agency's status as an independent agency may shield the regulator from the administration's executive order directing federal agencies to cease all "diversity, equity, and inclusion" and disability-accessibility work. The regulator also has legal obligation to enforce and implement the civil-rights provisions of the Equal Credit Opportunity Act and the Home Mortgage Disclosure Act.

We expect the CFPB to be the focus of proposed reforms in the coming months as the administration and Congress look to rein in the agency’s powers. Changes to funding and the leadership structure will surely be discussed, along with potential rule changes and examination schedules.

We will keep you updated on any further developments.

On February 4, 2025, NAR issued a comment letter to the Appraisal Subcommittee (ASC) in response to a proposed rule on the "ASC Enforcement Authority Regarding the Effectiveness of State Appraiser and Appraisal Management Company (AMC) Regulatory Programs."  

NAR policy supports independent valuations of real property performed by state credentialed appraisers in adherence with the Uniform Standards of Professional Appraisal Practice (USPAP); therefore, it is crucial that effective oversight of both appraisers and the appraisal management companies is in place and exercised. While the proposed rule codifies ways the states should oversee appraisers, it omits specific language on AMC monitoring and ways to report AMC violations.

This comment letter suggests additional monitoring, adding whistleblower protection, promoting consistency in regulation and investigation, monitoring adequacy of jurisdictions’ funding, and measurement of how effectively new rules and oversight affect compliance.

Read the comment letter to the ASC.

Read the ASC proposed rule.