The Trump administration is reducing regulation of nonbank lenders, leaving the task to state regulators.

A district court ordered HUD to develop a plan to disburse Fair Housing Initiatives Program grants before the funding lapses on Sept. 30.

Wells Fargo has been accused of charging borrowers improper mortgage fees during the origination process, while loanDepot is alleged to have violated the Truth in Lending Act’s loan originator compensation rule.

The court’s decision may give the CFPB “some pause” as to how it approaches other reversals, according to industry attorneys.

The Trump administration is prohibited from firing more than 1,400 employees at the consumer agency, for now. The next hearing on the case is set for April 29.

Judge Amy Berman Jackson said the evidence in the lawsuit makes it clear that the Trump administration has no intent of operating the CFPB at all.

The move could set a dangerous precedent, according to Adam Rust, director of financial services at the Consumer Federation of America.

The preliminary injunction only applies to workers who live or work in Washington, DC, and the 19 states that sued the Trump administration over the mass layoffs of probationary employees at 18 federal agencies.

A federal court judge this week extended a temporary order pausing mass layoffs at federal agencies, including at the CFPB and HUD, by five days.

Several consumer protection statutes provide borrowers a private right of action, including the Truth in Lending Act.