Fair housing groups file lawsuit arguing a federal rule change removes protections
Plaintiffs say the change would erase disparate-impact scrutiny and let lenders steer credit away from minority communities, with redlining cases topping $41 million in penalties.
- Fair housing organizations filed a lawsuit Wednesday challenging a federal rule change made earlier this year by the Consumer Financial Protection Bureau to the Equal Credit Opportunity Act, arguing it would reverse decades of lending protections.
- Plaintiffs argue the rule change is part of a broader Trump administration campaign to dismantle fair housing regulations, including proposed elimination of the Fair Housing Initiatives Program and cuts to the Department of Housing and Urban Development's Office of Fair Housing and Equal Opportunity.
- Under the new rule, lenders will no longer have to consider disparate impact policies that appear neutral but cause disproportionate harm to certain groups, potentially steering minority communities toward predatory lenders; in 2023, Los Angeles-based City National Bank paid more than $31 million for discriminatory lending.
- Lisa Rice, CEO and president of the National Fair Housing Alliance, warned that eliminating these guardrails will reduce credit access, weaken markets, and harm economic productivity, while Rise Economy CEO Paulina Gonzalez-Brito accused the CFPB of ignoring decades of precedent.
- Plaintiffs characterize the rule as dismantling 50 years of legal jurisprudence and bipartisan consensus, describing it as a drastic departure from the CFPB's and Federal Reserve Board's longstanding interpretation of anti-discrimination law; the CFPB did not respond to requests for comment.
29 Articles
29 Articles
Fair housing groups file lawsuit arguing a federal rule change removes protections for minorities
Fair housing organizations filed a lawsuit Wednesday over a federal rule change that they say would reverse decades of lending protections and open the door to discrimination against Black people, Latinos and other minorities.
Fair housing groups file lawsuit arguing a federal rule change removes protections | Talk Radio 1210 WPHT
Fair housing groups have filed a lawsuit over a rule change by the Trump administration that they allege reverses decades of lending protections and opens the door to discrimination against Black people, Latinos and other minorities | Talk Radio 1210 WPHT
Associated Press News
Fair housing groups file lawsuit arguing a federal rule change removes protections
Fair housing groups have filed a lawsuit over a rule change by the Trump administration that they allege reverses decades of lending protections and opens the door to discrimination against Black people, Latinos and other minorities.
Fair housing groups file lawsuit arguing a federal rule change removes protections - KFOR FM 101.5 1240 AM
Fair housing organizations filed a lawsuit Wednesday over a federal rule change that they say would reverse decades of lending protections and open the door to discrimination against Black people, Latinos and other minorities. The federal lawsuit, filed in Washington, D.C., takes aim at a change made earlier this year by the Consumer Financial Protection Bureau to the Equal Credit Opportunity Act, which bars lenders from discriminating against c…
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