Repo Alliance – Washington Shifts Could Reshape Repo Volume and Compliance Risk

New Trump banking directives, Fed leadership changes and CFPB downsizing are raising fresh questions for lenders, forwarders and recovery agencies.

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A wave of developments out of Washington this week could eventually ripple into the repossession industry. A new Trump executive order targeting banking risks tied to undocumented borrowers, combined with leadership changes at the Federal Reserve and continued downsizing at the CFPB, may alter lending behavior, compliance pressure and future recovery volume in the months ahead.

5.22.26: Auto Finance Update

Trump Executive Order Targets Non-Citizens in US Banking

On Tuesday, President Trump signed an executive order titled “Restoring Integrity to America’s Financial System”. President Trump considers banking services for undocumented immigrants to be illicit finance. The EO directs federal banking regulators to take actions to ensure, “Banks and other financial institutions should also be attentive to the credit risks posed by the extension of mortgage and auto loans, credit cards, and other consumer credit to the inadmissible and removable alien population.” Specifically, the EO directs federal banking regulators to “propose changes to applicable implementing regulations of the Bank Secrecy Act to strengthen risk-based customer due diligence requirements for covered financial institutions.”

It is unclear if the order and the subsequent regulations enforcing it are legal. But already some organizations have expressed concern. The American Bankers Associations responded: “Unless everyone is held to the same high standards, the financial system and consumers will be at risk. In light of today’s White House executive order on financial innovation, we urge the banking regulators to conduct their requested review in a way that allows for innovation but doesn’t compromise the safe and sound financial system we have today.”

We will continue to watch how the executive order could affect the auto finance market and the possible impact on repossessions.

Kevin Warsh Confirmed as Fed Chair

Last week, the Senate voted to confirm Kevin Warsh to be Federal Reserve Chairman by a vote of 54-45. Today, Warsh was sworn in as Fed Chair. At the swearing-in ceremony, President Trump said “I want Kevin to be totally independent. I want him to be independent and just do a great job.” For his part, Warsh said “To fulfill this mission, I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance.” Warsh has not spoken extensively about his plans with regard to the Consumer Financial Protection Bureau, and whether he would block funding for the Bureau.

New York Fed Report on Auto Loans

This week, the New York Branch of the Federal Reserve issued their quarterly Microeconomic Report. Their report found household debt continues to rise, though the rate of increase has slowed. Specific to auto loans, the report saw a modest increase in overall auto loan debt from $1.67 trillion to $1.69 trillion. The report further found serious delinquency of auto loans holding stead at roughly 3%.

CFPB Moving to a New Home

Today, Bloomberg Government reported that the Consumer Financial Protection Bureau (CFPB) is going to be moving from its current home near the White House to the federal office space currently occupied by the Pension Benefit Guarantee Corporation in Southwest DC. The new office has space for only 556 employees. That is far less than the 1,700 CFPB had at the beginning of the second Trump presidency or the 1,100 CFPB currently employs. The move likely signals two things:

1) the Bureau leadership wants to continue cutting staff, and

2) make future rehiring more logistically challenging.

WHO IS REPO ALLIANCE?

How and when was the group formed?

The initiative started several weeks ago with an invitation from ARA to all National and State Associations and other major industry leaders.

Is the Repo Alliance another association?

NO! The Repo Alliance is a collaborative effort of the groups which decided to answer the call and develop a fundraising program to further the interests of OUR industry and provide a voice at both National and State levels.

Which organizations came together?

American Recovery Association (ARA), the California Association of Licensed Repossessors (CALR), Texas Accredited Repossession Professionals (Texas ARP), and Harding Brooks Insurance.

How do you contribute?

A Square account has been established.
Click here to donate through Square.
Champion, Promote and Spread the word about this industry initiative!

Can I use any other method to contribute?

YES, you can mail a check, payable to Repo Alliance at 1400 Corporate Dr., Suite 175, Irving, TX, 75038.

Will funding reports and expenditures be available for review?

YES, this initiative will be completely transparent on monies raised with information available on the website.
One hundred percent of all monies raised will be used to pay for lobbying efforts. Everyone involved other than the lobbyist is a volunteer.

Why hire a dedicated lobbyist instead of just working with other lobbying groups?

We are working with other industry lobbyist groups but have realized without OUR OWN VOICE, we would be trusting the future of the Recovery Industry to the priorities of others. Riding the coattails of these other groups, puts our agenda as simply an afterthought.

What are the GOALS?

Change the negative, reputational image of the Recovery Industry.
Educate legislatures of the vital role we play.
Fight against language in bills or guidance from agencies that would decimate the recovery industry.

Contact Us

[email protected]

833-737-6255

833-REPOALL