Estimating the Cost of the Consumer Financial Protection Bureau to Consumers

This analysis by the Council of Economic Advisers (CEA) argues that the Consumer Financial Protection Bureau (CFPB) has imposed a massive regulatory burden on the U.S. economy, resulting in significantly higher costs and fewer options for consumers since its inception in 2011.The summary of the key findings is as follows:Aggregated Losses: The CEA estimates the CFPB has cost consumers between $237 billion and $369 billion since 2011. This includes increased borrowing expenses, reduced loan originations, and fiscal costs.Borrowing Expenses: Increased costs for financial products account for $222 billion to Impact by Loan Type:Mortgages: Costs increased by Credit Cards: Costs increased by Auto Loans: Costs increased by Comparison of Benefits: The CEA points out that while the CFPB claims to have returned $21 billion to consumers, the total cost of its regulations to those same consumers is more than ten times higher.Reduced Originations: Higher borrowing costs have led to an economic efficiency loss of up to $5.7 billion because fewer loans are being issued.Paperwork Burden: Compliance requires over 29 million annual hours, the equivalent of 14,100 full-time employees. This has cost businesses an estimated $21 billion since 2011.Taxpayer/Fiscal Cost: The CFPB has received Conclusion:The report concludes that the CFPB's regulatory framework has backfired by forcing financial institutions to pass compliance and liability costs onto the very consumers the agency was intended to protect. The administration frames these findings as a justification for its broader deregulatory agenda to lower prices and expand access to credit.Total Economic Cost to ConsumersInefficiency and Reduced AccessBureaucratic and Fiscal Impact