The Republican-led Congress has invoked the Congressional Review Act (CRA) in attempts to revoke final rules that former CFPB Director Chopra issued toward the end of Biden’s Administration. Under the CRA, Congress can repeal an agency’s final rule by passing a joint resolution of disapproval by simple majority vote. The CRA contains a lookback provision that allows the succeeding Congress to disapprove of rules finalized during the last 60 working days of the preceding Congress. Congressional Republicans are using this lookback provision to target at least four of these Chopra-era rules:
- Overdraft Lending Rule: On February 13, 2025, Senate and House Republicans introduced a joint resolution to revoke the Overdraft Lending: Very Large Financial Institutions Final Rule. Under this rule, previously covered here, financial institutions with over $10 billion in assets could be subject to a $5 cap on overdraft fees. On March 27, the resolution passed in the Senate. But on April 1, House Republicans failed to pass a resolution to officially repeal the rule, after nine Republicans broke rank resulting in a 206-222 vote.
- Supervisory Authority of Nonbanks Rule: On February 27, 2025, Senate and House Republicans introduced another joint resolution to revoke a final rule whereby the CFPB purported to extend its supervisory authority over nonbanks that facilitated at least 50 million covered digital payment transactions annually. On March 5, 2025, the Senate successfully passed its resolution, but the House failed to pass its resolution to repeal the rule during the April 1 vote.
- Medical Debt Rule: On March 6, 2025, Congressional Republicans also introduced a joint resolution to revoke a final rule concerning medical debts in consumer reports. Under this rule, previously covered here, (i) creditors are prohibited from obtaining and using information about medical debt to make credit eligibility determinations; and (ii) credit reporting agencies are prohibited from furnishing consumer reports with medical debt. This resolution has been referred to Senate and House committees for consideration and further action.
- Mortgage Loan Origination Automated Valuation Models Rule: On February 12, 2025, House Republicans introduced a joint resolution to revoke a final rule regarding the quality control standards of automated valuation models used by mortgage loan originators and secondary market issuers (final rule previously covered here). This resolution has been referred to the House Committee on Financial Services, and Senate Republicans have yet to introduce its counterpart.
House Republicans plan to regroup in order to get the joint resolutions repealing the Overdraft Lending Rule and Supervisory Authority of Nonbanks Rule passed.
If the first few months of this 119th Congress is any indicator, we can expect Republicans to introduce additional joint resolutions targeting more Biden administration rules. The following 12 CFPB actions fall within the CRA’s 60-day lookback provision, but the first four are substantive final rules and advisory opinions that Republicans may seek to revoke, while the others are technical adjustments very unlikely to be targeted:
- Residential Property Assessed Clean Energy Financing (Regulation Z) (Action: Final rule)
- Required Rulemaking on Personal Financial Data Rights (Action: Final rule)
- Debt Collection Practices (Regulation F); Deceptive and Unfair Collection of Medical Debt (Action: Advisory opinion)
- Truth in Lending (Regulation Z); Consumer Protections for Home Sales Financed Under Contracts for Deed (Action: Advisory opinion)
- Civil Penalty Inflation Adjustments (Action: Final rule)
- Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold (Action: Final rule; official interpretation)
- Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold (Action: Final rule; official interpretation)
- Fair Credit Reporting Act Disclosures Annual Adjustment (Action: Final rule; official interpretation)
- Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages) (Action: Final rule; official interpretation)
- Consumer Leasing (Regulation M) Annual Threshold Adjustments (Action: Final rule; official interpretation)
- Appraisals for Higher-Priced Mortgage Loans Exemption Threshold Adjustments (Action: Final rule; official interpretation)
- Truth in Lending (Regulation Z) Threshold Adjustments (Action: Final rule; official interpretation)
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