The CFPB has sent five regulations to the Office of Management and Budget for review, including the loan originator compensation and mortgage servicing rules.
The trade group said federal banking regulators have shifted from relying on evidence of intentional discrimination to bring redlining claims to using a “proportional distribution test.”
Debt-to-income ratio was cited as the top reason by lenders when rejecting applications for purchase mortgages in 2024, while lack of credit history was the top factor for refinance denials. (Includes data table.)
A trade group representing residential Property Assessed Clean Energy financial providers filed a lawsuit against the final rule, which is set to take effect in early 2026.
Cases in which the bureau is seeking to terminate its consent order early or has sought to vacate are tied to Wise US, Toyota Motor Credit Corp., Townstone Financial and Trustmark National Bank.
The 2023 disparate-impact standard doesn’t align with the policy of the Trump administration and should be replaced by a 2020 version, the trade group said.
The court on May 16 heard the government’s appeal against a preliminary injunction that prohibited it from laying off more than 1,400 bureau employees through a reduction in force process.
Nonbanks are especially vulnerable and at-risk in the absence of consistent federal regulation, according to panelists at the Conference of State Bank Supervisors’ mortgage symposium.
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