CFPB Narrows Enforcement Practices, Closes 86% of Supervisory Actions

The Consumer Financial Protection Bureau (CFPB) has recently announced a significant narrowing of its supervisory and enforcement practices, as detailed in its semi-annual report released on October 27. The report indicates that the CFPB closed 1,327 out of 1,552 supervisory actions that were open as of July 1, 2025, which amounts to approximately 86%. This shift reflects the bureau's alignment with the Trump administration's priorities, focusing more on mortgage lending and servicing while reducing its overall regulatory footprint.

Under the new approach, the CFPB has reassessed all open examinations, closing 66 that did not align with its revised priorities. The remaining 14 examinations will focus on correcting violations and addressing compliance weaknesses. The bureau has also cut the number of scheduled examinations by about 50%, concentrating its efforts on depository institutions and activities deemed as actual consumer fraud. Notably, mortgage origination and servicing will remain supervisory priorities.

In addition to these enforcement changes, the CFPB is pursuing regulatory modifications related to mortgage lending. This includes a review of the ability-to-repay requirements and qualified mortgage definitions under Regulation Z, which could potentially ease the borrowing process for home buyers. Furthermore, the bureau is considering a final rule to streamline mortgage servicing requirements under Regulation X, aimed at simplifying the loss-mitigation review process for servicers assisting borrowers facing payment difficulties.

The CFPB also reported that it did not cite any fair lending violations during the reporting period and has shifted its focus to cases of intentional discrimination with identifiable victims. Overall, the bureau closed about 40% of its pending investigations to better align its enforcement efforts with its revised priorities. This strategic shift may have lasting implications for home buyers, sellers, and real estate investors as the landscape of mortgage lending and servicing evolves.