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Lori Sommerfield

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With over two decades of consumer financial services experience in federal government, in-house, and private practice settings, and a specialty in fair lending regulatory compliance, Lori counsels clients in supervisory issues, examinations, investigations, and enforcement actions.

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On March 28, the Consumer Financial Protection Bureau (CFPB or Bureau) was ordered by the U.S. District Court for the District of Columbia to reinstate its employees and resume its operations. This decision comes after the CFPB allegedly attempted to shut down its activities, leading to the National Treasury Employees Union (NTEU) filing a lawsuit questioning the legality of the shutdown. The court held that the CFPB’s actions to halt its operations and terminate its employees were not consistent with its statutory obligations under Title X of Dodd-Frank. As a result, the court granted a preliminary injunction requiring the CFPB to reverse its shutdown efforts, reinstate its workforce, and continue performing its statutory duties. On March 29, the Bureau filed its notice of appeal of the preliminary injunction.

In a surprising turn of events, the Consumer Financial Protection Bureau (CFPB or Bureau) and Townstone Financial, Inc. (Townstone) have jointly moved to vacate the Stipulated Final Judgment and Order previously entered in the CFPB’s enforcement action against the mortgage lender alleging redlining practices. This motion, filed on March 26, 2025, comes after significant allegations by the CFPB regarding the Bureau’s own handling of the case, which began in 2020 under the first Trump administration and continued under the Biden administration.

In a significant policy shift under the Trump administration, the new Federal Housing Finance Agency (FHFA) Director Bill Pulte issued an order on March 25, 2025 terminating special purpose credit programs (SPCPs) supported by the government sponsored enterprises, Fannie Mae and Freddie Mac (together, the GSEs). This directive, effective immediately, will significantly impact banks with mortgage-based SPCPs.

This article was republished in insideARM on February 20, 2025.

As discussed here, on February 9, the National Treasury Employees Union (NTEU), which includes members employed by the Consumer Financial Protection Bureau (CFPB or Bureau), filed a lawsuit in the District Court for the District of Columbia. The lawsuit challenges the actions of Acting Director Russell Vought, arguing that his efforts to “shut down” the CFPB are unconstitutional and violate the Congressional mandate outlined in the Dodd-Frank Act. Since then, President Trump has nominated Jonathan McKernan to be the new Director of the CFPB (discussed here). If confirmed by the Senate, McKernan will replace Acting Director Vought, who also serves as the head of the Office of Management and Budget.

On February 11, President Donald Trump nominated Jonathan McKernan to be the new Director of the Consumer Financial Protection Bureau (CFPB or Bureau). If confirmed by the Senate, McKernan will replace Acting CFPB Director Russell Vought, who also serves as the head of the Office of Management and Budget. McKernan was reportedly on the Trump administration’s short list of potential candidates to lead the CFPB and is considered an ally of the financial services industry.

On Friday, the U.S. Court of Appeals for the Fifth Circuit ordered the tolling of compliance deadlines for the Consumer Financial Protection Bureau’s (CFPB or Bureau) Small Business Lending Data Collection final rule under Section 1071 of the Dodd-Frank Act (the 1071 Rule). As we previously reported here, the CFPB had asked the appeals court for a pause last Monday to allow the new administration time to consider its position on the 1071 Rule. The CFPB also conveyed that it did not object to the plaintiff trade associations’ earlier motion to toll compliance deadlines, a change-of-position that led to Friday’s order.

In a dramatic series of events, the Consumer Financial Protection Bureau (CFPB or Bureau) has undergone leadership changes, signaling a significant shift in its regulatory approach. These changes began with the firing of Director Rohit Chopra by President Donald Trump and have continued with the resignation of General Counsel Seth Frotman and the appointment of Russell Vought as Acting Director.

In this third episode of the Year in Review series of The Consumer Finance Podcast, host Chris Willis is joined by Lori Sommerfield, a partner in Troutman Pepper Locke’s Consumer Financial Services Practice Group, to discuss significant fair lending and Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) developments during 2024 and what to expect in 2025. They delve into aggressive redlining enforcement actions by federal regulators under the “Combatting Redlining Initiative” during the Biden administration, federal and state regulators’ increasing scrutiny of the use of artificial intelligence in consumer lending and potential discrimination claims, the Consumer Financial Protection Bureau’s war on “junk fees,” and the current status of the Section 1071 final rule. They also offer predictions concerning anticipated changes in the federal agencies’ approach to fair lending and UDAAP enforcement under the Trump administration. Tune in for a comprehensive overview and expert insights into these pivotal areas of law, which pose significant regulatory, legal, and reputational risk.

Hours before a scheduled hearing yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) filed an “Emergency Notice” in the U.S. Court of Appeals for the Fifth Circuit with respect to the ongoing litigation challenging the CFPB’s Small Business Lending Data Collection final rule under Section 1071 of the Dodd-Frank Act (the 1071 Rule), discussed here. The notice announced that, with the removal of CFPB Director Rohit Chopra over the weekend, “Counsel for the CFPB has been instructed not to make any appearances in litigation except to seek a pause in proceedings.” The notice is in line with an email that went to all CFPB staff yesterday, directing staff to halt most all of the CFPB’s activities in connection with the appointment of Treasury Secretary Scott Bessent to serve as the agency’s Acting Director (as discussed here). The CFPB is also seeking a “pause” in other litigation and, presumably, is halting non-public enforcement proceedings as well.

In a significant and highly anticipated move, President Donald Trump has fired Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB or Bureau). Rohit Chopra, who had been serving as the Director of the CFPB since 2021, confirmed his departure in a letter to President Trump dated February 1, 2025. Chopra’s tenure was characterized by aggressive efforts to curb what he termed as “junk” fees and regulate Big Tech’s financial services.