While the MBA is optimistic change is coming, Idziak is a little bit surprised it's not here yet
After years of what many in the industry thought was overregulation, some are still waiting for big changes that remain in limbo.
The industry thought it had a friendlier regulator and a chance to rewrite the rules, but some of the suggested changes still haven't happened.
The Trump administration set out to eliminate the Consumer Financial Protection Bureau (CFPB), but the courts blocked that effort. Now the industry waits for changes to two provisions that have been teed up for revision.
Peter Idziak (pictured top), partner-in-charge at Sandler Law Group, said two rules sit at the center of the industry's frustration: the loan originator compensation (LO comp) rule and the TILA-RESPA Integrated Disclosure (TRID) rule.
"I think the disappointment, I'll use that word, amongst the industry is that the CFPB hasn't done more up to this point to really go in and revise some of these regulations like LO comp, like others like the TRID rule that's a little long in the tooth," Idziak told Mortgage Professional America. "And modify it, revise it, make it a little bit more consumer-friendly, make it cheaper. And the fact that it's sort of just been stalemated, I guess."
How the stalemate formed
Rohit Chopra, who led the bureau under the Biden administration, was fired on Feb. 1, 2025. Acting leaders have run it since, with Russell Vought stepping aside on Aug. 1 for Mark Paoletta.
"I think from the industry standpoint there was a little bit more optimism that now's our chance to sort of undo a lot of the overburdensome regulation that Chopra had really passed and some of his focus," Idziak said.
The bureau has taken some steps. It included an LO comp rulemaking among five it sent to the Office of Information and Regulatory Affairs in June 2025, and in July it opened a request for information on changes to TRID, with comments due Aug. 10.
The bureau's push to cut its staff by two-thirds is also tied up in court, with that case on hold until the Senate acts on a permanent director.
"I understand that the administration has sort of theory in what they wanted to do with the CFPB and delete it, but the courts sort of stymied that," he said. "And so we've developed into this stalemate. And I guess I'm a little surprised that after maybe trying that out, that being beaten back a little bit at the courts, that the administration has just been satisfied to not do anything.
“You know, ‘Okay, we felt like it was an unnecessary agency; we're going to delete it. That didn't work. Okay, let's see how we can reduce regulatory burden.’ And that was a little surprising to me."
What comes next
Brian Johnson, the nominee to lead the bureau, cleared the Senate Banking Committee 13-11 on Sept. 17. The full Senate has not voted, and it is out until after the Nov. 3 midterms.
"I think Johnson will be confirmed," Idziak said. "He's someone serious, has a lot of experience as a regulator who's familiar with mortgages too, because the Bureau does a lot of other things besides mortgages."
Mortgage Bankers Association president and CEO Bob Broeksmit told the association's annual convention in Chicago on Monday that the administration recently issued a list of regulations it is looking to revise, and LO comp is on it. He said the rule "isn't long for this world," though the details will take months to work out.
"And maybe, no special insight, but maybe this is why Bob feels that he can say what he said about the LO Comp Rule, is that Johnson gets confirmed and that's something that's teed up," Idziak said. “The thing that's being advocated is the ability to reduce your pricing. It benefits the borrower.
“If a broker's underpaid and they're sort of stuck, it's almost sometimes like a second mouse gets the cheese situation. Where if you get an LE from someone else, you see the pricing, you can quote it initially lower, but if you were first, you're stuck."
In the meantime, Idziak tells clients the laws still apply, even when enforcement feels light. The harder part, he said, is competing against lenders that seem to be ignoring them.
"It's tough because you're in an environment where you're trying to survive,” Idziak said. “Maybe you hear, ‘Hey, this guy over here, the way he's paying his loan officers, I feel like that violates the LO Comp Rule.’ Or they're entering into some joint marketing agreements. Is this really RESPA compliant? My compliance folks tell me no, but they're doing it.
“And no one's stopping them. And to me, either you change the rules because you think the rules aren't working, but if you're not going to change the rules, then you have to enforce what's out there."
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
