In this conversation with Leah Dempsey, Shareholder at Brownstein Hyatt Farber Schreck, Washington's regulatory landscape is undergoing seismic shifts that credit unions can't ignore. The CFPB under Acting Director Mark Calabria has transitioned from addressing Biden-era regulatory holdovers to implementing proactive policy changes that could benefit the credit union industry. This includes potential revisions to decade-old mortgage rules and modifications to the controversial public complaint database that has long frustrated financial institutions.

Meanwhile, the reconciliation process faces significant hurdles as the Senate parliamentarian recently struck down several key provisions championed by Banking Committee Chairman Tim Scott, including an attempt to zero out CFPB funding. With a July 4th deadline looming, lawmakers face intense pressure to complete the package despite these setbacks and emerging geopolitical concerns in the Middle East potentially shifting priorities.

Most significantly for mortgage lenders, the Supreme Court's recent Hobbs Act ruling threatens to upend established compliance frameworks for member communications and lending programs. Like last year's landmark Loepper decision that ended Chevron deference, courts may give less weight to interpretations from agencies like the FCC, HUD, and USDA. For credit unions navigating the complex TCPA requirements or offering government-backed mortgage programs, this could create a challenging patchwork of judicial interpretations that vary by jurisdiction.

While Congress's immediate focus remains on reconciliation and stablecoin legislation, the second half of 2023 promises deeper engagement on housing and consumer finance issues more directly relevant to credit unions. These developments underscore the critical importance of staying informed and engaged with regulatory changes that will shape mortgage lending operations for years to come.

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