Agency staffers have also been instructed to suspend the effective date of any final rules that have not yet gone into effect, according to reporting from Bloomberg and NPR.
Bessent, who was confirmed as Treasury Secretary last week, took over as Acting CFPB Director on Monday after President Donald Trump fired Director Rohit Chopra.
Citing confidential sources, Bloomberg reported that White House officials have not determined whether Bessent will lead the CFPB as acting director until a permanent director is found, or if he will hand off responsibilities to a new acting head.
NPR reported that Bessent instructed CFPB staff not to issue any communications of any type, including research papers.
The Trump administration’s move to stop the CFPB’s work “means inviting scammers and swindlers into working families’ bank accounts,” said Jesse Van Tol, President and CEO of the National Community Reinvestment Coalition. “It means instability, uncertainty and exposure. Chaos only benefits bad actors. I urge Secretary Bessent to restore this key regulator and watchdog to active duty swiftly.”
Bessent’s appointment appears to signal a large-scale rollback of agency actions under the Biden administration. The new regime could target rules capping overdraft fees, banning the use of medical debt by credit-reporting companies, Bessent’s appointment appears to signal a large-scale rollback of agency actions under the Biden administration. The new regime could target rules capping overdraft fees, banning the use of medical debt by credit-reporting companies, and the nonbank registry rule.
Senator Tim Scott, the chairman of the Senate Committee on Banking, Housing and Urban Affairs, told a group of reporters in late January that he will be reviewing the CFPB’s funding structure and identifying any functions already done by other federal agencies for potential cuts.
And Senate Republicans, led by Ted Cruz, have publicly stated their desire to “zero out” the Federal Reserve’s budget allocation for the CFPB, though they likely don’t have the 60 votes needed.
HousingWire recently compiled a list detailing all of Trump’s actions that impact housing.
