LO comp, rule revisions and a receptive CFPB: How Johnson can help brokers

Without a full-time director since Rohit Chopra’s departure nearly 500 days ago, the Consumer Financial Protection Bureau (CFPB) could finally have that vacancy filled soon. President Trump nominated Brian Johnson on Thursday to take over as the full-time director

Johnson is the third person nominated for the role since the Trump administration took office. The first, Jonathan McKernan, was shifted to Treasury. The second, Stuart Levenbach, was widely seen as a placeholder designed to keep acting director Russ Vought in the chair longer.

Peter Idziak (pictured top), principal at Polunsky Beitel Green, believes that the third time may indeed be the charm for Johnson.

"I think this is a serious nominee that the administration expects to actively lead the bureau," Idziak told Mortgage Professional America. "And I think for industry on the policy front, we could see the pending rulemaking that industry has advocated for enacted. So I think from an industry perspective this could be a big positive because there's a lot of regulation that really needs to be revised and amended, and we'll hopefully see that."

Leading a more active CFPB

Idziak said Johnson's background and qualifications are strong, and he doesn’t believe that he would be willing to accept the nomination if he wasn’t going to actually run the bureau.

"I think given his biography, I don't think he would have accepted the position if it were just a figurehead and that the administration would continue to sort of not do anything with the bureau," Idziak said. "So I think that his nomination signals that you should see some activity from the CFPB, which, given his history, is not necessarily a bad thing for industry."

Idziak said one of the central frustrations for mortgage brokers and lenders is that the Chopra-era rules have not changed. Enforcement and supervision have pulled back, but the underlying regulations remain in place.

"If you get a Democratic administration in 2029, they may decide to go back during this period, knowing that enforcement had sort of ebbed, and really take a close look at this," Idziak said. "So for the mortgage lending industry, it's very important that the rules themselves are amended when this opportunity presents itself."

Table showing CFPB acting and full-time directors who served a minimum of six months, including their start date, end date, length of service, and nominating president.

*As of June 12, 2026. Source: CFPB leadership calendar, Wikipedia.

For brokers specifically, Idziak said the rule revisions most worth watching are loan originator compensation (LO comp) and RESPA servicing, both of which the industry has been pushing to have revised for years.

Executive Order 14393, signed by President Trump on March 13, directed federal agencies, including the CFPB, to ease regulatory burdens on mortgage lending. Idziak said that mandate gives Johnson a clear framework to work from.

"I think what brokers can expect to see is movement on some of these rules that we've objected to, issues with LO comp, issues with RESPA servicing, and some other things that industry has long wanted changed," Idziak said. "I think you have someone who is a sympathetic ear, has industry experience, and understands that rules are only really effective if they're being enforced. And to the extent that you have old rules, you need to modify them as opposed to just not enforcing them."

Active CFPB could slow state enforcement

The question now is whether Johnson gets confirmed before August 1. Most administrative law experts believe Vought cannot continue in the acting director role beyond that point.

Idziak said confirmation is likely, despite pushback from Democrats. He doesn’t believe that Johnson’s confirmation will be delayed in any meaningful way, barring something unexpected.

"I think the odds that he's confirmed are almost certain," Idziak said. "He has the experience of a federal regulator. He's an expert in a lot of these areas. I know Elizabeth Warren has already come out with a statement against him, but given the Republican control of the Senate, I don't think you'll see a real delay in his confirmation."

Idziak said the Johnson nomination, and subsequent increased federal activity, might cause some states that had stepped up enforcement efforts to take a step back.

"You may see some of the states pull back a little bit because historically, even the more Democratic states have increased their consumer finance focus whenever the bureau is considered to be inactive," Idziak said. "So if the bureau is actually out there, even in a more reduced capacity, you may see some states pull back because states have limited resources and they may just not have much of an interest in duplicating some of what's being done at the federal level."

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