The high cost of preparing for both CFPB and state exams has a disproportionate impact on small independent mortgage banks that don't have the compliance economies of scale of larger lenders.
Just before members were removed from the consumer advisory board last month, acting Director Mick Mulvaney signed an amended charter that would shrink the panel to six members.
Leandra English, who sued President Trump and Mick Mulvaney last year claiming to be the rightful director of the CFPB, said Friday that she plans to resign and drop the litigation.
The Consumer Financial Protection Bureau's practice of "regulation by enforcement" and use of nonbinding guidance materials makes its regulatory efforts "unfair and ineffective" to lenders and servicers, the Mortgage Bankers Association said.
It is still a long shot that a rival of Mick Mulvaney's will be able to reclaim the agency's top job, but judges have raised questions over whether Mulvaney can keep the position.
Most mortgage lenders and banks do not maintain a comprehensive vendor management strategy, exposing institutions to increased compliance risk, according to a recent survey.
