The U.S. banking sector is undergoing a seismic regulatory transformation, driven by twin forces: the dismantling of politicized debanking practices and the recalibration of capital requirements for systemically important institutions.
On August 8, 2025, the Consumer Financial Protection Bureau (“CFPB”) issued four advance notices of proposed rulemaking (“ANPR”) inviting comments on whether it should substantially reduce the number of nonbank companies the CFPB supervises in the auto finance, international money transfer, debt collection, and consumer credit reporting markets. An agency spokesperson told Law 360, “As part of President Trump’s overhaul of this abusive agency, ‘Larger Participant’ regulations are open for re-examining after more than a decade.
On August 15, the U.S. Court of Appeals for the District of Columbia issued a decision in the case of National Treasury Employees Union (NTEU) v. Consumer Financial Protection Bureau (CFPB or Bureau). The appellate court vacated the district court’s preliminary injunction, which had previously restricted the CFPB’s actions to halt the Bureau’s operations and terminate its employees.
The recent American Association of Residential Mortgage Regulators Annual Conference included a presentation highlighting the rising use of Artificial Intelligence (“AI”) in the Financial Services industry. As this will clearly be an ongoing focus of all regulators, not just residential mortgage regulators, we thought a short summary of the presentation, and some or our reactions to the presentation, might be of interest.
The California Department of Financial Protection and Innovation (DFPI) has reached a $2.3 million settlement with former mortgage lender and servicer Caliber Home Loans, Inc. (Caliber), following findings that the company overcharged thousands of California borrowers, in violation of state financial regulations.