Council of Economic Advisers Finds CFPB Raised Consumer Loan Costs

The Council of Economic Advisers ("CEA") estimated that since 2011, the Consumer Financial Protection Bureau ("CFPB") "cost consumers between $237-$369 billion, including fiscal costs, increased borrowing expenses, and reduced originations."

According to the report, higher borrowing costs accounted for the bulk of that impact—between $222 billion and $350 billion from 2011 through 2024. By loan category, the CEA attributed $116 billion to $183 billion in higher mortgage costs to CFPB rulemakings, with additional substantial costs tied to auto loans and credit cards. The CEA contended that these figures "significantly surpass[ed]" the $21 billion the CFPB reported returning to consumers over the same period.

The CEA also estimated that reduced loan originations led to economic "deadweight loss" of $1.5 billion to $5.7 billion. It argued that heightened enforcement risk increased lenders’ compliance costs, drove up interest rates, and discouraged lending to otherwise qualified borrowers. The CEA reviewed mortgage market thresholds under the Ability-to-Repay rule, finding that loans subject to greater regulatory liability carried interest rates approximately 16 basis points higher than comparable loans with less exposure.

The CEA also highlighted administrative and fiscal burdens associated with the CFPB. It estimated that the annual paperwork burden exceeded 29 million hours, costing businesses roughly $21 billion since 2011, and calculated total fiscal costs—including Federal Reserve transfers and lost tax revenue—at more than $13 billion.