White House Council of Economic Advisers: CFPB Rules Cost Consumers Up to $369 Billion

A new report from the White House Council of Economic Advisers (CEA) claims that regulations issued by the Consumer Financial Protection Bureau (CFPB) have cost consumers between $237 billion and $369 billion since the agency’s creation in 2011.

According to the report, the bulk of those costs stem from higher borrowing expenses tied to CFPB rulemaking, particularly mortgage ability-to-repay and Qualified Mortgage standards adopted after the 2008 financial crisis. The CEA estimates that bureau policies increased mortgage costs by as much as $183 billion, auto loan costs by up to $51 billion, and credit card costs by up to $116 billion over the past 13 years. The report also cites compliance burdens, including 29 million annual paperwork hours and roughly $21 billion in cumulative business costs.

The CEA argues that increased compliance and litigation risk have reduced loan originations and raised interest rates, leading to diminished credit access. The findings arrive as Acting Director Russell Vought continues efforts to significantly downsize the agency.

Democrats and consumer advocates sharply disputed the analysis, saying it ignores consumer restitution and systemic risk reduction benefits since the financial crisis. Senate Banking Committee Chair Tim Scott (R-S.C.), however, praised the CEA’s conclusions, saying prior CFPB policies raised borrowing costs and constrained access to credit.