Breaking Up May Not Be All That Hard to Do

As we noted on Wednesday, the CFPB highlighted Director Chopra’s competition focus when it joined other agencies renewing their mortgage-servicing supervisory and enforcement standards. This competition focus is consistent with the principles espoused in President Biden’s executive order on, expanding it into a new area where the CFPB has strong — albeit indirect —   authority over a critical consumer-finance sector.  We expect both the Bureau and the agencies with direct authority over the sector or M&A involving it to heed this call to address servicing competitiveness, raising challenges most immediately to the biggest nonbanks but also posing a new political risk in retail-banking M&A.