CFPB Rescinds Nonbank Registries, Rolling Back Biden-Era Rules

Overview

• The final rule eliminates the nonbank enforcement-order registry and withdraws the 2023 proposal to collect standardized contract terms, including arbitration clauses.
• The rescission takes effect upon publication in the Federal Register after the CFPB paused enforcement in April and proposed the rollback in May.
• Acting Director Russell Vought cited compliance burdens for firms and maintenance expenses for the agency, describing expected benefits as minimal.
• Mortgage trade groups including the Community Home Lenders of America and the Mortgage Bankers Association praised the move as redundant with the NMLS and not useful to consumers.
• The reversal eases CFPB scrutiny of large nonbank technology and digital payments firms that had been targeted under prior leadership.