WASHINGTON, D.C. — A new report from the Council of Economic Advisers estimates that federal oversight by the Consumer Financial Protection Bureau has increased borrowing costs and reduced loan availability, costing consumers between $237 billion and $369 billion since the agency’s creation in 2011.
What This Means for You
- The report estimates higher interest costs on mortgages, auto loans, and credit cards since 2011.
- It attributes reduced loan approvals and higher compliance costs to federal regulation.
- The findings significantly exceed the $21 billion the CFPB reports returning to consumers.
The February 2026 report, titled Estimating the Cost of the Consumer Financial Protection Bureau to Consumers, concludes that increased borrowing expenses account for the largest share of the total, between $222 billion and $350 billion through 2024.
Borrowing Costs and Loan Availability
According to the report, borrowers paid between $116 billion and $183 billion more for mortgages, $32 billion to $51 billion more for auto loans, and $74 billion to $116 billion more for credit cards over the period studied.
The Council of Economic Advisers based its estimate on mortgage market data surrounding the CFPB’s 2013 Ability-to-Repay rule. That rule required lenders to verify a borrower’s ability to repay and established a 43 percent debt-to-income threshold — meaning a borrower’s monthly debt payments could not exceed 43 percent of income to qualify for certain legal protections.
Using loan-level data from the Home Mortgage Disclosure Act, the report found that loans just above the 43 percent threshold carried interest rates roughly 16 basis points higher than similar loans below it . A basis point equals one-hundredth of a percentage point.
The report describes this increase as a “wedge” — the additional cost lenders charge to offset regulatory and liability risk.
In addition to higher interest rates, the report estimates that reduced loan originations — meaning fewer loans issued — resulted in an economic efficiency loss of between $1.5 billion and $5.7 billion.
Paperwork and Compliance Costs
Beyond interest rate effects, the report calculates that CFPB regulations imposed more than 243 million hours of paperwork between 2011 and 2024, costing businesses approximately $21 billion when adjusted for inflation.
In 2024 alone, annual paperwork requirements exceeded 29 million hours, which the report equates to about 14,100 full-time employees devoted entirely to compliance.
The report notes that these compliance costs are not included in the total cost estimate to avoid potential double counting, because some of those expenses may already be reflected in higher borrowing costs .
Fiscal Impact
The CFPB is funded through transfers from the Federal Reserve rather than congressional appropriations. According to the report, inflation-adjusted transfers to the CFPB totaled $8.9 billion from 2011 through 2024 .
Because Federal Reserve net earnings are typically remitted to the U.S. Treasury, the report argues that those transfers reduce Treasury revenue. It estimates an additional $4.4 billion in what economists call “marginal excess tax burden,” referring to economic inefficiencies that arise from higher taxation.
Combined, the report estimates the CFPB’s total fiscal cost at more than $13 billion since its inception.
Report Conclusions
The Council of Economic Advisers concludes that regulatory oversight, supervision, and enforcement actions have increased costs for lenders and borrowers across mortgage, auto, and credit card markets.
The report states that the estimated consumer costs exceed the CFPB’s reported $21 billion returned to borrowers, arguing that the broader economic effects of regulation should be considered in evaluating the agency’s impact.
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