Contending that policies implemented by guidance represent an unfair regulatory burden and might be contrary to federal law, the CFPB is rescinding 67 guidance documents issued since the bureau began operating in 2011.
“In many instances, this guidance has adopted interpretations that are inconsistent with the statutory text and impose compliance burdens on regulated parties outside of the strictures of notice-and-comment rulemaking,” Acting CFPB Director Russell Vought said, in announcing the policy changes.
He continued, “But even where the guidance might advance a permissible interpretation of the relevant statute or regulation, or afforded the public an opportunity to weigh in, it is the Bureau’s current policy to avoid issuing guidance except where necessary and where compliance burdens would be reduced rather than increased.”
And he said that the bureau has determined that the benefits of the new policy outweighs the cost to any purported reliance interests.
The guidance documents being rescinded fall into four categories: policy statements, interpretive rules, advisory opinions, and other guidance (primarily circulars and bulletins).
As background, Vought said that during his first term, President Trump issued an Executive Order directing agencies not to use guidance documents to create new binding rights or obligations. Instead, agencies should impose legally binding obligations on the public only through regulations “and only after appropriate process, except as authorized by law or as incorporated into a contract.”
Vought added, that although the Executive Order was rescinded by the Biden Administration, “the principles it expressed are required by laws such as the Administrative Procedure Act and are no less salient today.”
Vought said he issued a memorandum on April 11, 2025 prohibiting the use of guidance documents and a separate memorandum instructing all CFPB staff to review all guidance the bureau had issued since its inception.
Vought further outlined the new policy and the reasons for it:
- The CFPB is committed to issuing guidance only when that guidance is necessary and would reduce compliance burdens rather than increase them. “Historically, the Bureau has released guidance without adequate regard for whether it would increase or decrease compliance burdens and costs,” he wrote. “Our policy has changed.”
- The bureau is committed to reducing its enforcement activities in conformance with President Trump’s directive to deregulate and streamline bureaucracy. Many of the CFPB’s enforcement responsibilities overlap or duplicate other state and federal regulatory efforts, he noted.
- The bureau does not believe that any reliance interests compel retention of these guidance documents. Vought pointed out that parties understand that guidance is generally non-binding.. “Finally, to the extent guidance materials or portions thereof go beyond the relevant statute or regulation, they are unlawful, undermining any reliance interest in retaining that guidance” he said.
There is one important caveat to the CFPB’s actions here. The bureau has cautioned that it intends to continue reviewing these guidance documents. As a result, the possibility exists that at least some, although probably not all, may ultimately be reinstated in some fashion. In the meantime, the bureau has determined that the guidance documents should not be enforced or otherwise relied upon by the bureau while that review is ongoing.
An interesting aspect is that the CFPB rescinded a circular addressing UDAAP concerns with digital platforms involving non-mortgage consumer financial products and services, but did not rescind an advisory opinion addressing similar UDAAP concerns, as well as Real Estate Settlement Procedures Act (RESPA) section 8 concerns, with digital platforms involving mortgage products.
Specifically, in February 2023 the CFPB issued an advisory opinion entitled Real Estate Settlement Procedures Act (Regulation X); Digital Mortgage Comparison-Shopping Platforms and Related Payments to Operators]. The CFPB issued the advisory opinion “to address the applicability of [RESPA] section 8 to operators of certain digital technology platforms that enable consumers to comparison shop for mortgages and other real estate settlement services, including platforms that generate potential leads for the platform participants through consumers’ interaction with the platform (Digital Mortgage Comparison-Shopping Platforms).” While the CFPB mainly addresses RESPA, it appeared that UDAAP concerns are a significant motivating force behind the issuance of the advisory opinion.
The UDAAP concern aspect was confirmed when in February 2024 the CFPB issued Consumer Financial Protection Circular 2024-01, entitled Preferencing and steering practices by digital intermediaries for consumer financial products or services. The circular raises concerns similar to the UDAAP concerns addressed in the advisory opinion, but does not address RESPA as it involves non-mortgage consumer financial products and services.
The rescission of the circular involving non-mortgage consumer financial products and services, and not the similar advisory opinion involving mortgage products, may reflect the intent of the CFPB, as announced in April 2025 to make mortgages the highest priority category of consumer financial products and services for consumer protection efforts.