Texas Housers, July 30, 2020: Texas Housers joins National Community Reinvestment Coalition lawsuit against CFPB to overturn rule allowing banks to hide their lending records
This morning, Texas Housers, under the leadership of the National Community Reinvestment Coalition and represented by Public Citizen Litigation Group, joined the NCRC, Montana Fair Housing, the City of Toledo, Empire Justice Center, and the Association for Neighborhood and Housing Development to file a lawsuit against the U.S. Consumer Financial Protection Bureau for passing an illegal rule flaunting the requirements of the Home Mortgage Disclosure Act and exempting thousands of financial institutions from reporting data about home loans they lend to the public.
The new rule undermines more than 40 years of federal law requiring banks to lend in all areas of a community and not exclude borrowers of color or low-income neighborhoods, and disclose their lending data so that the public can easily determine a bank’s record of compliance. These laws, including the Home Mortgage Disclosure Act, Community Reinvestment Act, and the Dodd-Frank Wall Street Reform Act, were meant to combat lending discrimination and the still present legacy of redlining, the federally-mandated and racist practice that instructed federally-insured banks not to lend in communities of color beginning in the 1930s.
