First 100 Days: Regulatory Update

January 28, 2025

The financial markets expect a considerable deregulatory push under the Trump administration. However, policymakers, including Republican members of Congress, continue to note that deregulation can be as painful as putting new regulations in place. As a former Justice Department official observed in the American Banker:

"An executive order has the force of law within the executive branch, but if one of the next steps is to rescind regulations or to adopt new regulations, that process has to go through the formal notice-and-comment rulemaking process. Deregulation is by definition regulation, and that's going to take time."

President Donald Trump directed a freeze on federal rulemaking pending review, giving his administration the opportunity to reconsider any rules close to being proposed or completed. Freezing regulations for review is a standard transition practice.

  • Any rules sent to the Federal Register that have not yet been published are to be withdrawn for review.
  • Any rule recently published that has not yet taken effect will have its effective date delayed 60 days.

Personnel Is Policy

As reported in December 2024 by CREFC, President Donald Trump nominated Paul Atkins, former Commissioner at the Securities and Exchange Commission (SEC), to head the SEC. Please see here for details on Atkins’ agenda.

On Jan. 21, Trump nominated Bill Pulte to lead the Federal Housing Finance Agency (FHFA).

  • Pulte is CEO of Pulte Capital Partners LLC, a strategic investment firm that invests in building products businesses. He is the grandson of William Pulte, founder of the Pulte residential home construction company.
  • Pulte’s nomination came as a surprise given his lack of experience in the housing finance market. However, his comments on the lack of housing supply in the U.S. reflect Trump’s focus on the housing sector.
    • During a 2024 interview on Fox Business, Pulte blamed regulation and the lack of housing supply for driving up home prices, stating that “until we increase supply, whether it comes from old homes. . . or new homes, you’re going to have these prices go up.”

Other than Pulte’s nomination, Trump’s focus on financial services generally has taken a back seat to other priorities, such as immigration and DEI. Yet, he has named acting heads for a few key agencies. These officials will run their respective agencies on an interim basis until full-time chairs are nominated and confirmed.

  • SEC: Mark Uyeda, currently an SEC Commissioner, will serve as acting head. During his time as a commissioner, Uyeda has argued the SEC is operating outside of its mandate. He will serve on the SEC alongside fellow Republican Commissioner Hester Peirce and Democratic Commissioner Caroline Crenshaw.
  • Commodity Futures Trading Commission (CFTC): CFTC Commissioner Caroline Pham has been named acting CFTC Chair. One of the agency’s five politically-appointed commissioners since 2022, Pham has advocated for clearer crypto rules and focused on American competitiveness and right-sizing regulations to promote market liquidity.
  • Federal Deposit Insurance Corporation (FDIC): FDIC Vice Chair Travis Hill assumed the role of Acting Chair Monday, outlining a comprehensive agenda of priorities. In addition, Hill committed to ensuring that the FDIC “remains within our statutory mandates, and stops coloring outside the lines.”
    • Given that Hill is considered a top candidate for FDIC Chair, his priorities provide insight into the path bank regulators might take over the next few years.

Trump surprised many market observers by not firing Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB) or replacing Michael Hsu, Acting Director of the Office of the Comptroller of the Currency (OCC), on day one of his presidency. Additionally, Caroline Crenshaw, a Democrat on the SEC whose term recently expired, has retained her seat for now.

What people are saying: Identifying and installing leaders across the financial regulatory agencies can be like a game of chess.

  • Trump might have been waiting for Treasury Secretary nominee Scott Bessent to be confirmed and in place at Treasury before making final decisions about other financial regulators. With Bessent’s confirmation last night, we might see more nominations soon.
  • American Banker notes that the Trump administration “has been stalled in filling posts for the CFPB and the OCC, in part, by longstanding tradition that has entitled the minority party to fill two of the five seats on the FDIC's board.”
    • The FDIC board is composed of a chairman, a vice chair, the heads of the CFPB and the OCC, and one board member of the opposing political party.
    • As Isaac Boltansky, managing director and director of policy research at BTIG, stated, "As soon as Trump replaces the heads of the OCC and CFPB, there will be too many Republicans on the five-member board and one of them will need to depart.”

Key policy news? In terms of financial policy, GSE reform and the Basel 3 Capital Endgame remain the highest profile issues.

Financial market participants continue to speculate on whether the Trump administration will prioritize removing the GSEs from conservatorship. Senior policymakers have indicated that privatizing the GSEs is not likely to be an immediate priority for the administration.

  • In remarks before the National Association of Realtors, HFSC’s French Hill said: 

“We absolutely have to have executive branch leadership, and that's not a cop-out. I mean, it's just something that can't just be orchestrated by Congress.”

  • Politico notes that Hill’s call for executive branch involvement “comes days after Trump’s nominee for Treasury secretary, Scott Bessent, gave noncommittal answers about overhauling Fannie and Freddie in response to questions from the Senate Finance Committee.”

The Basel 3 Endgame also continues to come up in discussions, with senior GOP lawmakers recommending withdrawal of the current proposal and potential capital-neutral re-proposal.

  • Acting FDIC Chair Hill also noted the need to adjust:

“our capital and liquidity rules to appropriately balance driving economic growth with ensuring safety and soundness and resilience to shocks.”

CREFC will keep membership closely informed of policy developments that impact the CRE markets, including the nominations and confirmations of leaders in the financial regulatory space.

Contact Sairah Burki (sburki@crefc.org) with any questions.
 

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.

Become a Member

CREFC offers industry participants an unparalleled ability to connect, participate, advocate and learn!
Join Now

Sign Up for eNews