Lending Regulations 2025: What are they and how do they work?

Learn about the 2025 lending regulations

If you’ve ever applied for a loan or used credit, you know how confusing the rules can seem. Fees, interest rates, bureaucracy… There always seems to be a catch, right? But 2025 brought important changes to loan regulations in the United States, and some of them could directly impact your pocket.

The government and regulatory agencies have adjusted several rules to make the credit market more accessible and fair for consumers. If you’re planning to buy a house, finance a car or even use credit strategically, understanding these new regulations can help you avoid unpleasant surprises.

Let’s explore everything that has changed and what it means for you!

Has the CFPB lost its power? What does this mean for consumers?

The Consumer Financial Protection Bureau (CFPB), which was set up to protect consumers from abusive practices in the financial sector, suffered significant cuts in 2025.

This means that some rules protecting against abusive fees and undue charges may be more difficult to enforce.

On the one hand, the relaxation of regulations could encourage more credit supply. On the other hand, there is a risk that some institutions will take advantage of this lesser scrutiny to adopt less transparent practices.

If you often take out loans or credit cards, it’s worth keeping a close eye on how this might affect your payment conditions.

Has the loan limit for real estate increased?

Yes! With real estate prices rising steadily, the Federal Housing Finance Agency (FHFA) has adjusted the ceiling on loans that can be guaranteed by the government.

Now, the ceiling for conventional loans is $806,500, an increase of 5.2% over the previous year.

In high-cost regions, this figure can reach $1,209,750. This means that it will be possible to finance more expensive properties without having to resort to private loans with higher interest rates.

Medical debts no longer affect your credit?

One of the most talked about changes is the exclusion of medical debts from credit reports. This new rule could benefit millions of Americans whose credit scores have been affected by overdue medical bills.

Now, financial institutions will no longer be able to use these debts as a criterion for granting credit, which could make it easier to approve loans and cards.

This measure recognizes that many medical debts are not the result of financial irresponsibility, but of unexpected emergencies and high health costs in the US.

Have the amounts of protected credit transactions increased?

Yes, the government has adjusted the value limits so that more credit and leasing transactions are covered by consumer protection regulations.

As of 2025, loans of up to $71,900 fall into the category of consumer credit protected by Regulation Z (Truth in Lending), guaranteeing transparency in the rates and interest applied.

This is especially relevant for those taking out personal loans or leasing vehicles, as the conditions of these contracts must now be clearer and fairer.

Could deregulation have an impact on the financial market?

With the changes in the rules, there are expectations that the Federal Reserve will further relax banking regulations, allowing financial institutions more freedom to buy Treasury bonds.

This move is already impacting the bond market and could influence the economy in different ways, including changes in interest rates and the supply of credit.

If you invest or follow the financial market, this is an area to keep an eye on.

What does all this mean for you?

If you’re planning to take out a loan, finance a property or simply want to maintain a good credit history, these changes are fundamental. Some rules have made credit more accessible, while others have reduced consumer protections.

The most important thing is to be well informed and compare your options before signing any contract.

Banks and financial institutions can take advantage of these changes to offer new conditions, so always read the fine print and choose what makes the most sense for your pocket.

If you need more information, it’s worth consulting official sources and keeping an eye on what’s new in the financial sector.

Written by

Juliana Raquel