The Consumer Financial Protection Bureau (CFPB) has suspended its supervisory activities and closed its headquarters following directives from newly appointed Acting Director Russell Vought.
The Associated Press reported that in an email to staff on Saturday, February 8, Vought instructed employees to “cease all supervision and examination activity,” effectively pausing the bureau’s regulatory functions. The following day, CFPB Chief Operating Officer Adam Martinez announced that the Washington, D.C., headquarters would be closed from February 10 to 14, with employees and contractors advised to work remotely unless otherwise directed.
These actions align with the administration’s broader efforts to reduce federal regulatory oversight. Vought, who also serves as the head of the Office of Management and Budget, further emphasized this approach by notifying the Federal Reserve that the CFPB would not be drawing its next round of funding, citing the agency’s existing reserves as sufficient, according to a report from Politico.
The suspension of CFPB activities coincides with recent legal developments concerning Section 1071 of the Dodd-Frank Act. On Feb. 7, 2025, the U.S. Court of Appeals for the Fifth Circuit granted a stay on compliance deadlines for Section 1071, which mandates financial institutions to collect and report data on loan applicants’ demographics, including gender, race and LGBTQ+ status. The stay applies to the plaintiffs and intervenors in the case, providing temporary relief from the rule’s requirements.
