In the recent Collins v. Yellen decision, the U.S. Supreme Court ruled the structure of the Federal Housing Finance Agency (FHFA) is unconstitutional. This opened the door for President Biden to remove the agency’s director, Trump appointee Mark Calabria, which he did. The FHFA is now being led by Acting Director Sandra L. Thompson.

This parallels the Biden Administration’s actions earlier this year with the Consumer Financial Protection Bureau (CFPB), where Trump appointee Kathy Kraninger was replaced by Acting Director Dave Uejio.

Making high level personnel switches is a typical part of a new administration, so none of this is particularly surprising, although the Supreme Court ruling does allow a new level of staff changes.

Still, no matter what side of the political aisle you’re on, it’s clear changes are coming from the new leadership of these agencies. Enforcement seemed to take a back seat with both agencies for the past four years, but it’s very likely there will be more stringent oversight coming.

The exact nature of the transformation and how dramatic it will be remains to be seen, but everyone in the mortgage industry needs to be prepared for change.

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