On Wednesday, January 22, 2025 in Washington, DC, US, a Senate Budget Committee in Washington, DC, US, Management for US President Donald Trump and Director of Budget (OMB), Russell Wout, during the hearing of a Senate Budget Committee in Washington, DC, US.
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Consumer financial protection bureauOn Thursday, the new leadership rejected at least four enforcement cases made by the director of the previous administration.
In legal filing, CFPB issued a notice of voluntary dismissal for cases involved CapitalBerkshire Hathaway -owned vendible mortgage and finance; A Rocket cosThe unit called rocket homes real estate; And a loan servant name Pennsylvania Higher Education Assistance Agency.
The agency said, “The plaintiff, the consumer, the Bureau of Financial Protection, dismisses the bias of this action against all the defendants.” Capital a caseIt used the same language in other cases.
The tricks are the latest sign of sudden change in the agency since the CFPB Director Russell watt He took over this month. In combination with the Department of Government Efficiency of Elon Musk, the CFPB has closed its Washington headquarters, fired about 200 employees and told those who remain to stay to stay Almost all work,
Under the former director Rohit ChopraCFPB accused Capital one, one of the more than $ 2 billion of interest; It said that vendorsbilt ignored the signals that customers could not take hostage to it; It accused the rocket of providing illegal kickback to real estate agents; And it said that loan servants Pennsylvania Higher Education Assistance Agency Inappropriately collected loans.
A Capital One spokesman said the bank welcomed the dismissal of its case, which “it is strongly disputed”.
A spokesperson of the rocket also appreciated the news: “Rocket Holmes has always associated buyers with top performing agents only based on objective criteria such as how well they helped homebukes to get their dreams of home owners. We are proud to put the matter behind.”
Capital forest and rocket shares climbed after dismissal.
Arabs lost
Current and former CFPB employees have told CNBC that legal matters with upcoming docks will probably be rejected as the agency left most of what Chopra has done.
It began at the end of last week when the agency dismissed its case Single fundsA Fintech lender had earlier accused customers of gauzing.
Former head of CFPB enforcement, Eric Helperin said in a phone interview on Thursday that CFPB dismissal was unprecedented in the history of the bureau.
Helperin said, “Five cases have been rejected by this administration so far, while in the entire history of the bureau, only one more case has been dismissed without relief for any consumer.”
Since recent cases were dismissed with prejudice, CFPB has agreed to never bring these claims again, discontinued the possibility of closing the funds back for consumer relief, he said.
“From cases that were rejected today, consumer losses are billions of dollars that CFPB will never be able to withdraw to consumers,” Helperin said.
‘Shame you’
At the same time, the filing appeared on Thursday that the senator was grilling President Trump’s pick Jonathan McKerinen to lead the CFPB on a permanent basis, during a nomination hearing.
“Mr. McKerinan, literally when you are sitting here and you are talking about the importance of following the law, we get the news that CFPB is prosecuting against companies who are cheating American families, or are reported to cheat American families,” Sen Elizabeth Warren Said,
“I think the time of that announcement is designed to embarrass you,” Warren said.
