CFPB may finalize Reg X changes, GSE streamline refis in 2026

The CFPB does not expect meaningful impact from changes to the LO Comp rule and lacks bandwidth to pursue the issue. The CFPB shows greater interest in creating a streamlined refinance framework for Fannie Mae and Freddie Mac because of broader economic implications. FHA and VA already provide streamlined refinance programs that let agency-backed loans bypass full reunderwriting, while the GSEs do not have a comparable permanent option. Such a program could exempt certain rate-and-term refinances from the ability-to-repay rule. A potential LO Comp rollback and revisions to servicing requirements under RESPA and Regulation X were listed for review submitted to OMB in June 2025. The Mortgage Bankers Association advocates LO Comp revisions, TRID changes, and HMDA reporting threshold updates, and it tied these proposals to executive order priorities.

"The CFPB does not believe changes to the LO Comp rule would have a meaningful impact and that the agency doesn't have the bandwidth to pursue the issue. By contrast, the CFPB sees far more interest in creating a streamlined refinance framework for Fannie Mae and Freddie Mac due to its broader economic implications. The Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) already offer streamlined refinance programs that allow loans backed by the agencies to bypass full reunderwriting requirements. The GSEs currently lack a comparable permanent option."

"Such a program would likely exempt certain rate-and-term refis from the ability-to-repay rule. The CFPB did not immediately respond to HousingWire's request for comment. A potential rollback of the LO Comp rule, along with revisions to servicing requirements under the Real Estate Settlement Procedures Act (RESPA) and Regulation X, appeared on a list of rules under review submitted to the Office of Management and Budget (OMB) in June 2025. President Donald Trump also issued two executive orders in March that aim to expand U.S. housing supply and increase consumer access to mortgage credit, touching on a broad range of housing finance issues."

"The Mortgage Bankers Association (MBA) has been one of the industry's most vocal advocates for revising the LO Comp rule. In a letter sent earlier this month to CFPB acting director Russell Vought, the MBA said it had prioritized three issues tied to Trump's broader executive order agenda. Among the group's proposals were to allow loan originators to reduce their compensation to compete more effectively and better align compensation structures with different loan products, particularly housing finance agency (HFA) bond loans."

"The MBA also called for reforms to TRID tolerances, cure provisions and timing requirements, as well as updates to Home Mortgage Disclosure Act (HMDA) reporting thresholds under Regulation C. Clearly, there are plenty"

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