Consumer Financial Protection Bureau examiners sidelined for much of the past year are expected to return to work as early as April, but with a dramatically scaled-back examination program that will feature far fewer exams, narrower scope, and fully virtual reviews, according to a published report. The CFPB expects to conduct fewer than 70 exams in 2026, a steep decline from recent years, as supervisors begin developing exam scopes next week ahead of second-quarter reviews.
The changes, outlined during a virtual meeting with examination staff yesterday, represent a significant shift in how the CFPB oversees banks, fintechs, debt collectors, credit reporting agencies, and other supervised entities.
From fiscal years 2020 through 2024, the CFPB averaged more than 600 supervisory events annually, according to its most recent performance report. Under the new approach:
- The agency will conduct fewer than 70 exams across all supervised entities in 2026.
- All examinations will be conducted virtually, with no on-site reviews or in-person interviews.
- Exams are expected to be shorter than the traditional eight-week cycle.
- Some supervisory staff will be reassigned to non-examination work.
The pullback mirrors similar moves by other federal banking regulators, which are also narrowing their examination focus to core financial risks.
CFPB officials indicated that supervision will be “fundamentally different” than under former Director Rohit Chopra, according to the report. While examiners were not told whether they must formally recite the agency’s previously announced “humility pledge,” leadership said the principles behind it will guide examinations.
Those principles emphasize focusing on issues clearly within the Bureau’s statutory authority and on “pressing threats to consumers,” particularly service members, veterans, and their families. The CFPB has also said it is shifting supervision back toward traditional banks with more than $10 billion in assets and away from fintechs and other nonbank companies.
One of the most consequential changes involves fair lending supervision. The CFPB is moving to bar the use of disparate impact analysis in examinations, meaning examiners will no longer rely on statistical disparities to infer unintentional discrimination. Instead, reviews will be limited to overt legal violations that require evidence of discriminatory intent.
The exam restart comes as an appeals court prepares to hear arguments challenging Acting Director Russell Vought’s broader plan to dismantle much of the CFPB’s operations. Meanwhile, the Bureau has requested $145 million from the Federal Reserve to fund its activities after a federal judge ordered it to do so earlier this month.
