Compliance Is Not Optional: Why Mortgage Lenders Must Stay CFPB-Ready
- Jewell Salazar
- Jan 12
- 3 min read
Over the past year, some mortgage lenders have assumed that regulatory pressure has eased. While the Consumer Financial Protection Bureau (CFPB) may appear less aggressive at times, that belief is both dangerous and short-sighted. The reality is clear: the CFPB remains active, federal regulations are unchanged, and enforcement risk has not disappeared.
In fact, state regulators have increasingly stepped in to fill any perceived gap. State-level examinations and enforcement actions have grown in both frequency and intensity, often targeting the same federal consumer protection statutes lenders assume are being “de-emphasized.” These agencies are not hesitant to impose penalties, mandate corrective actions, or pursue public enforcement when compliance weaknesses surface.
Mortgage lenders must also recognize that regulatory environments are cyclical. A future federal administration could easily return to a more aggressive enforcement posture—and when that happens, regulators will not limit their review to current activity. They routinely look back, exposing any regulation that was ignored, loosely followed, or inconsistently applied years earlier.
Compliance cannot be toggled on and off based on headlines or political shifts. A robust Compliance Management System (CMS), consistent documentation, ongoing monitoring, and comprehensive staff training are not optional—they are foundational to long-term viability. A CMS is a function of governance that extends from a board of directors, an advisory board, or ownership. The more structured the governance, the better. MBS helps lenders create a governance structure with an advisory board.
Lenders that take CMS structure seriously and remain disciplined / “exam-ready” at all times protect themselves not only from financial penalties, but also from reputational damage and operational disruption.
The mortgage companies that will thrive in the next cycle are those that treat compliance as a core business function, not a temporary burden. Bulletproof compliance is not about fear—it is about foresight, control, and protecting enterprise value.
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Dr. Andy Schell, Ph.D., DBA, MSML, MBA, CPA/CFF, CMB
Dr. Schell is CEO, Managing Partner, and Co-Founder of Mortgage Banking Solutions and the Founder of MBS Financial Services ("MBS"), based in Austin, Texas. Dr. Schell is known for his ability to turn "vision into reality" and "chaos into order" as he finds creative solutions to the challenges his clients face addressing Revenue Stability, Technology Enhancement, Financial Management, and Workflow Efficiency.
He has 4 decades of experience as a strategist directing the activity of both small and large groups of employees including mortgage lending activity at Bank of America. His leadership knowledge extends from his hands-on experience and his academic training in his MBA, his master's degree in leadership, and his doctoral work to examine employee dynamics given leader stimulus
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