Legal Newsline, August 4, 2020: CFPB mortgage-reporting rule challenged by affordable-housing groups
A new rule imposed by the Consumer Financial Protection Bureau is being challenged in court by affordable-housing groups.
The lawsuit, filed July 30 in District of Columbia federal court, takes issue with the CFPB’s Home Mortgage Disclosure (Regulation C) that was published May 12. It raises the loan-volume thresholds at which financial institutions are required to report data about closed-end mortgage loans and open-end lines of credit.
It raises those thresholds from a rule published five years ago.
“As a result, thousands of lending institutions will become exempt from reporting (Home Mortgage Disclosure Act) data, undermining the effectiveness of HDMA in achieving its statutory purposes,” the lawsuit says.