Important CFPB Updates

Posted by Gracie Nelson on May 13, 2025

This week, the U.S. Department of the Treasury announced President Trump’s intent to nominate Jonathan McKernan to serve as Undersecretary of Domestic Finance. McKernan, who has been advising Treasury while awaiting confirmation to lead the CFPB, was widely expected to take over as Director of the Bureau. His new role would place him in a key position to shape financial policy from within Treasury and establishes a shift in leadership expectations at the CFPB. There are no front runners apparent at this time, but we will track developments closely.  

With McKernan remaining at Treasury, attention now turns to how the Bureau will move forward under its current leadership— Acting Director Russell Vought. One immediate signal of direction is the CFPB’s move to rescind 67 outdated policy statements, interpretive rules, and advisory opinions. Vought noted that the recissions will not be considered final until the Bureau completes its review process. In the meantime, any withdrawn guidance will not be enforced or relied upon by the Bureau.  

You can view the recissions document on the Federal Register here. 

This withdrawal signals a shift in the Bureau’s regulatory approach—aimed at modernizing its guidance and reducing unnecessary complexity. Throughout Director Chopra’s term, financial institutions navigated increasing regulatory and compliance demands. During this period, GoWest remained actively engaged advocating for balanced and practical approaches to evolving requirements. 

Now, the CFPB appears to be taking a more targeted stance, issuing guidance only when it meaningfully reduces uncertainty or streamlines compliance—rather than adding extra layers of interpretation creating confusion or risk. This is a positive development for credit union operations, reducing compliance friction and allowing credit unions to serve their members. 

Amid these changes, GoWest continues to advocate for member credit unions as we prepare for the Spring Hike the Hill. GoWest and credit union leaders will engage directly with CFPB staff to advocate for streamlined implementation of statutorily required rules under Dodd-Frank. Our priority is to ensure that these rules include only what is mandated by Congress so credit unions can operate with more flexibility and less compliance uncertainty. 

Key rulemakings GoWest credit unions will address during Hike the Hill include: 

• Section 1071 (HMDA for Business) 

• Section 1033 (Open Banking) 

As always, GoWest will keep you informed on new developments and continue to champion regulatory outcomes that support your operations and your members. 

Posted in Advocacy on the Move, Regulatory Advocacy.