CFPB

CFPB — the Consumer Financial Protection Bureau — is the federal agency created by the Dodd-Frank Act in 2010 to consolidate consumer financial protection authority that had previously been scattered across multiple agencies. The bureau writes and enforces rules governing mortgage origination, loan servicing, debt collection, and consumer disclosures, making it the single most relevant federal regulator for participants in the secondary mortgage note market.

For note investors, the CFPB's influence is felt primarily through the servicer. The bureau's servicing rules — including requirements around loss mitigation timelines, borrower communication, error resolution, and payment application — set the operational framework that every licensed servicer must follow. Investors who self-service or work with non-compliant servicers risk enforcement actions, borrower lawsuits, and regulatory penalties. Even as the agency's enforcement posture has shifted across administrations, the underlying regulations remain codified and enforceable, and prudent investors treat CFPB compliance as a baseline operational requirement.