The Consumer Financial Protection Bureau (CFPB) recently announced the rescission of 67 guidance documents, marking a significant shift in its regulatory approach. Acting CFPB Director Russell Vought emphasized that many of these documents imposed unnecessary compliance burdens on regulated entities and were inconsistent with statutory texts. The decision aligns with the bureau’s current policy to issue guidance only when it is necessary and reduces compliance burdens instead of increasing them.
The rescinded documents fall into four categories: policy statements, interpretive rules, advisory opinions, and other guidance such as circulars and bulletins. This move is rooted in principles set during President Trump’s administration, which discouraged the use of guidance documents to create binding obligations without proper rulemaking procedures. Although these principles are no longer mandated by executive order, Vought argues they remain relevant under laws such as the Administrative Procedure Act.
Vought issued a memorandum in April 2025 prohibiting reliance on guidance documents and instructing CFPB staff to review all previously issued guidance. The bureau aims to reduce enforcement activities, avoiding overlaps with state and federal efforts while ensuring that guidance does not create unlawful obligations beyond existing statutes or regulations.
The CFPB’s decision carries a caveat, as the bureau intends to continue reviewing these documents. Some may be reinstated if deemed necessary, although for now, they should not be enforced or relied upon. A notable example is the rescission of a circular addressing UDAAP concerns with digital platforms for non-mortgage products, while an advisory opinion on similar concerns for mortgage products remains intact.
In February 2023, the CFPB issued an advisory opinion regarding the Real Estate Settlement Procedures Act (RESPA) and digital mortgage comparison platforms. This opinion primarily addressed RESPA concerns but also reflected UDAAP motivations. In 2024, the bureau released a circular on preferencing and steering practices by digital intermediaries, further highlighting UDAAP issues without focusing on RESPA.
The selective rescission suggests the CFPB’s prioritization of consumer protection in mortgage products. This aligns with the bureau’s strategy to focus on mortgages as a key area for regulatory oversight. The decision reflects a broader effort to streamline regulatory requirements and reduce the compliance burden on financial entities.
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Note: This article is inspired by content from https://www.consumerfinancemonitor.com/2025/05/16/cfpb-rescinds-67-guidance-documents/. It has been rephrased for originality. Images are credited to the original source.