Bloomberg Government, July 30, 2020: Fair Housing Groups Sue CFPB Over Reduced Mortgage Reporting
The Consumer Financial Protection Bureau is facing a lawsuit from housing advocates over a May rule that slashed the number of mortgage lenders that must report loan application data that regulators use for fair lending enforcement.
The CFPB violated the Administrative Procedure Act when it raised the reporting thresholds for banks and other lenders under the Home Mortgage Disclosure Act, the National Community Reinvestment Coalition, according to a complaint filed Thursday by the city of Toledo, Ohio and housing advocacy groups from Montana, New York and Texas.
The rule is making it more difficult to stop discrimination by reducing the number of lenders that report HMDA data, according to the complaint filed in the U.S. District Court for the District of Columbia.
