As federal oversight adjusts under the new administration, mortgage lenders may feel less compelled to uphold strict compliance standards. Experts emphasize the importance of vigilance, highlighting that regulations like TILA and ECOA allow for private actions. Even without aggressive CFPB enforcement, lenders could face scrutiny from future administrations or state regulators, who are ramping up oversight. It is crucial for lenders to maintain robust compliance programs, as the long-term costs of rebuilding weakened frameworks far exceed any short-term gains made by cutting compliance efforts.
While the regulatory tone may be shifting in Washington, lenders shouldn't assume that means it's safe to take their foot off the gas. Federal laws still allow for private rights of action, enabling borrowers to bring claims even if current enforcement is lax.
The cost of rebuilding a weakened compliance program far outweighs any short-term savings, as enforcement at the state level has also begun to increase, indicating that compliance shouldn't be underestimated.
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