The surprise victory of Donald Trump in the presidential election is raising questions and speculation in the mortgage industry, given his statements that he wants to roll back federal banking regulations mandated by the Dodd-Frank Act—which also created the Consumer Financial Protection Bureau (CFPB).

We asked John Socknat, partner at Ballard Spahr, to weigh in on what mortgage lenders and servicers can expect from a Trump administration.

Do you think Trump’s desire to "dismantle" Dodd-Frank means he will abolish the CFPB altogether, or revamp it along the lines of some of the recommendations Republicans included in the CHOICE Act?

I think the likelihood of the CFPB being abolished is pretty low – it would take significant effort, which would be met with a fair amount of resistance. The easier path will be revamping its governance structure. That can play out a couple different ways.

One is through congressional legislation installing a commission structure and subjecting the CFPB to congressional oversight and appropriations. The Financial CHOICE Act, for example, includes such a proposal.

Another would be through Cordray’s departure or ouster and replacement, subject to Senate confirmation, with someone perceived to be more industry friendly.

How quickly after inauguration do you expect these changes to happen?

It is unlikely that Cordray will leave voluntarily, which points to change happening less quickly. The status of the appeal of the PHH Corp. v. CFPB case also will dictate how quickly things might change. As long as the PHH decision is stayed pending further appeals, Cordray can only be removed essentially for cause. And legislative change is not something that happens quickly, as we well know.