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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 74 November 2025 J O U R N A L CFPB SHUTDOWN PLAN SPARKS LEGAL BATTLES AND INDUSTRY UNCERTAINTY T he White House is moving forward with plans to disman- tle the Consumer Financial Protection Bureau (CFPB), according to Budget Director Russell Vought, who said that the process is already underway and could conclude "within the next two or three months." As reported by CUtoday, Vought made the comments during an appear- ance on The Charlie Kirk Show, signaling what could become one of the most consequential regulatory shifts for the mortgage and financial industries in more than a decade. According to Vought, only "a handful" of employees remain at the CFPB's Washington headquarters as operations are scaled down. He described the move as part of a broader effort to reduce what he and other Republican leaders see as excessive regulatory oversight. "All they want to do is weaponize the tools of financial laws against basically small mom-and-pop lenders and other small financial institutions," said Russell Vought, White House Budget Director. Legal Challenges Underway The plan faces immediate legal resis- tance. CFPB labor unions and consumer advocacy groups have filed lawsuits arguing that the administration lacks the authority to dismiss most agency staff or dissolve the bureau outright. Separately, a federal judge has issued a temporary order blocking broader layoff plans tied to the ongoing government shutdown, calling the move politically motivated and raising ques- tions about its legality. Created in 2011 after the financial crisis, the CFPB has been central to enforcing consumer protection laws across mortgage lending, servicing, and credit markets. Its potential closure would reshape the regulatory environment mortgage professionals have operated under for more than a decade. Industry reaction remains mixed. Supporters of the shutdown say the bureau's rules have imposed costly compliance burdens, particularly for smaller lenders and credit unions. Critics counter that removing the CFPB could weaken consumer safeguards and inject uncertainty into lending practices. "Americans have gotten more than $21 billion back in their bank accounts after being cheated and scammed by big corporations, thanks to the CFPB. But Trump and his Administration love grift- ers and scammers. So they're trying to kill the agency holding them accountable," said Sen. Elizabeth Warren on X. "We are seeing so many draconian cuts to health care and other critical services. Our economy is slowing down, with high- er unemployment and higher prices. It says a lot that we're able to find the money to bail out Argentina but we can't help people who are in real need at home," said Rohit Chopra, Former Director, CFPB. If the shutdown proceeds, questions remain over where current CFPB respon- sibilities—such as TRID, loan officer compensation, fair lending, and servicing standards—will be reassigned. No formal guidance has yet been issued by the Administration. The development follows recent staff reductions at the U.S. Department of Housing and Urban Development (HUD), signaling broader shifts in federal housing and finance oversight. FHFA OUTLINES FIVE-YEAR PLAN TO STRENGTHEN OVERSIGHT AND EFFICIENCY R esponsible oversight of Fannie Mae and Freddie Mac, ensuring the safety and soundness of the Federal Home Loan Bank system, and "Americans have gotten more than $21 billion back in their bank accounts after being cheated and scammed by big corporations, thanks to the CFPB." —Sen. Elizabeth Warren