Tuesday, February 11, 2025

This week, the Consumer Financial Protection Bureau (CFPB) was effectively shuttered, and I find myself sitting with mixed emotions. It’s not a rare moment, given my chosen profession, to pause and reflect on the role of effective regulation, the impact of enforcement, and the tension between those who call for reform and those who fear its absence. It’s complicated, and like many things in our industry, it doesn’t lend itself to simple, all-or-nothing solutions.

Regulation, like a river, is necessary. It provides structure, flow, and life to the financial ecosystem. But when a river floods its banks, the answer isn’t to remove the river entirely.  Rather, it’s to build better levees, to manage the flow, to create balance between nature’s power and the needs of those living along its edge. The CFPB has, at times, felt like a flood, spilling over its intended purpose and causing unintended damage. But eliminating it altogether—or shutting it down even temporarily—feels less like flood control and more like cutting off water to an entire region.

A better approach might be to trim the excesses while preserving the structure. Regulation is like getting a haircut—it requires skill, balance, and a steady hand. No one disputes that parts of our regulatory framework need refinement. And also, there’s a difference between a thoughtful, measured cut and an overcorrection that leaves the industry raw and vulnerable. The goal should be a tailored approach, one that allows for innovation while maintaining basic and relied upon safeguards.

I’ve spent my career at the crossroads of two deeply contrasting approaches and philosophies. In one lane, the world of title and escrow, compliance, and regulation—where careful, deliberate steps are paramount. Precision matters. Slow down. Document everything. If there’s risk, mitigate it before proceeding. In the other lane, my stint in technology, the order of the day was the breakneck pace of innovation—where the mantra has long been “move fast and break things.” Push forward. Iterate quickly. If something doesn’t work, pivot. These two philosophies don’t always coexist easily, but I’ve always believed the best outcomes happen at their intersection.

The CFPB’s shutdown brings this contrast into sharp relief. Many in my business community have rightly called for reforms. The Bureau’s actions have, at times, overreached, creating uncertainty and unintended consequences for well-intentioned businesses. But does its (even temporary) absence bring stability? Doubtful. The markets, the industry, and consumers thrive on predictability, and the sudden vanishing of a regulatory presence—no matter how flawed—creates uncertainty of its own.

So where does that leave us? If there’s a lesson in this moment, maybe it’s that the best path forward isn’t about choosing between extremes. It’s not about flooding or drought. It’s about finding a way to channel the flow. The best regulation, like the best business strategy, recognizes that progress and protection aren’t opposing forces. They can—and must—coexist.

The CFPB may be closed this week, but the broader conversation about its role, its scope, and its future is far from over. And for those of us who work at this intersection—between speed and caution, between innovation and regulation—we have a role to play in shaping what comes next.

Coverage in our family of publications will keep you updated on all the changes you need to know.  Our first story is available here, with our compliments.

Join our live Emergency Briefing Webinar: CFPB’s Shake-Up & Its Impact on You this Wednesday with former CFPB staffers Rich Horn and David Friend.  Registration is also complimentary, and details can be found here.  Hope to see you there.

Until Next Time,

Mary Schuster
Chief Knowledge Officer
October Research, LLC