Legal Newsline: CFPB mortgage-reporting rule challenged by affordable-housing groups

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.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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