Protection Bureau (CFPB). Federal agencies also have been working with the appraisal industry to review its procedures to determine where discriminatory practices might linger. “You will have fair housing issues that will be litigated, and you will have an effort by the government to further direct its programs to underserved or minority communities,” Horne says. “The administration will try and do its best to focus on these issues and to ensure that minorities are appropriately supported. But I don’t think there’s going to be major overreach on regulations, either.” However, if various agencies identify specific concerns, Horne says, he expects regulators will be direct and forceful. “If there are violations, if there are questions, then there will be enforcement actions—as there should be,” Horne says. “If there are specific violations, whether the CFPB or other entities, they will aggressively engage on those.” Meanwhile, the status of the CFPB will continue to wind its way through the courts, with the potential that legislators might curtail its power depending on those outcomes, Olson says. The CFPB, which was created during the Obama administration, was given broad authority to regulate banks, lenders and other financial institutions. During the Trump administration, the agency’s independence was challenged, and efforts to limit its authority have persisted. If the U.S. Supreme Court upholds the 5th Circuit Court of Appeals ruling that Federal Reserve funding is unconstitutional, the CFPB may have to come to Congress to obtain appropriations to fund its operations, Olson says. Even with the Republicans in control of the House, he adds, he doesn’t think they will dismantle the agency. However, they might seek to alter how it operates, such as changing its leadership from a single director to a commission that might be more accountable to Congress, limiting its jurisdiction or cutting its funding. “House Republicans could have a tremendous amount of leverage, and the only thing stopping them from ending the CFPB is that, politically, that would be too far for them to go,” Olson says. “But they would be in a position to significantly hamstring what’s going on, which obviously affects lenders.” Watching Washington continued from page 20 22 REVERSE MORTGAGE / JANUARY–FEBRUARY 2023
RkJQdWJsaXNoZXIy MjQ1MzY1