Q&A: What Lenders Need to Know About a Fast-Changing Regulatory Landscape

Highlights:

• The regulatory landscape for lenders in 2025 is rapidly changing due to a mix of deregulation and new executive orders from the current administration.

• Lenders should closely monitor Congressional priorities, including the National Defense Authorization Act (NDAA) and government funding bills, as well as the Consumer Financial Protection Bureau's (CFPB) focus on "pressing threats to consumers" and its review of open banking.

How is lending impacted by the whirlwind of legislative and regulatory changes in Washington, D.C.? Episode 58 of the Market Pulse podcast from Equifax brings listeners inside the beltway to understand how new regulations, economic data, and agency priorities are reshaping the mortgage and lending industries. We're joined by Stephanie Gunselman, head of Federal Government Relations at Equifax, for a deep dive into the trends every lender should watch.

Why is regulation such a hot topic for lenders in 2025?

Gunselman explained that eight months into this current presidential term, the administration is rolling back some prior rules while issuing a surge of executive orders. This dual push - deregulation in some areas, new directives in others - is creating a fast-moving policy environment. Lenders must stay close to both legislation and agency rulemaking to anticipate compliance needs.

What are Congress's top priorities for the rest of the year?

Two bills dominate the agenda:

• National Defense Authorization Act (NDAA): A "must-pass" law funding defense, often carrying financial-services riders such as expanded free credit monitoring for service members.

• Government Funding: Lawmakers are racing to pass 12 appropriations bills or adopt a short-term resolution to avoid a shutdown.

Other conversations, like "Reconciliation 2.0," may also affect financial policy if budget talks move forward.

How do executive orders influence financial regulation?

Executive orders set the tone for policy but leave details to agencies. A good example is the administration's AI Action Plan, which grew out of an executive order and now guides agencies on supporting innovation while avoiding overregulation. Even when orders are issued quickly, implementing rules and frameworks take time - giving lenders a window to prepare.

What's changing at the CFPB?

The Consumer Financial Protection Bureau is sharpening its focus on "pressing threats to consumers." Two highlights:

1. A proposal to define "risk to consumers" to prioritize enforcement.

2. Early steps to revisit Section 1033 (open banking), with a new comment period on personal financial data rights.

The agency still lacks a permanent director; Russ Vought remains acting chief.

How should lenders view the CFPB's medical debt and open banking moves?

A Texas court recently struck down a CFPB rule that would have banned medical debt from credit reports and underwriting. For now, there's no federal ban, though state laws may differ. Open banking is under review, and lenders should watch for new proposals on data privacy, security, and cost recovery.

Where does data privacy stand at federal and state levels?

Congress hasn't reached agreement on a national privacy framework, though talks continue. Meanwhile, 19 states have passed their own laws, some blending privacy with AI oversight. States such as California, Vermont, and Oregon are also leading efforts on data broker transparency and consumer data deletion, though definitions vary widely.

Are there updates on credit reporting and small-business data collection?

Yes, bills are moving through Congress to modernize the CFPB's consumer complaint portal and crack down on fraudulent filings. For small-business lending, compliance with Section 1071 data collection has been delayed due to litigation, and the bureau may issue a new version later this year.

What about "Buy Now, Pay Later" regulation?

Federal action is unlikely soon. The CFPB has paused work on a nationwide BNPL framework, but New York is advancing state rules and HUD is studying BNPL's impact on mortgage repayment. Other states may follow.

How is AI shaping policy in lending?

The administration's AI plan emphasizes transparency: notifying consumers when AI is used, assessing potential impacts, and setting clear accountability. Policymakers want to encourage innovation while ensuring fair, explainable decisions - critical for underwriting, fraud detection, and credit scoring.

Which other bills should lenders track?

In a "lightning round," Gunselman highlighted:

• Housing availability and affordability legislation

• Delays in Corporate Transparency Act enforcement

• The "Keep Call Centers in America Act"

• The Ending Scam Credit Repair Act, aimed at curbing abusive practices

If you're a lender, what should you focus on today vs. tomorrow?

Gunselman advises watching these areas:

• Today: Monitor CFPB actions on open banking (1033) and small-business data (1071).

• Tomorrow: Track evolving AI governance and data-privacy laws that could reshape credit reporting and lending operations.

Listen to the full episode of the Market Pulse podcast to hear Jesse Hardin and Stephanie Gunselman unpack how lenders can navigate these regulatory crosswinds - and what's next for mortgage and credit markets.