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.”

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.

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.

In just under two months, the bureau’s temporary mortgage servicing provisions enacted in response to the pandemic will end, potentially disrupting servicing operations.

The bureau’s proposed data broker rule was withdrawn. And the agency is considering whether it will also get rid of its nonbank registry final rule.

The exemption from standards for qualified mortgages would increase to include banks with up to $50 billion in assets.

The move is unlikely to have much impact on states, according to industry attorneys.

According to industry insiders, there is room for state and federal regulators while also supporting the independence of federal agencies.

Republicans in the House urged the CFPB to rescind Biden-era guidance documents, interpretive rules, advisory opinions and circulars that weren’t issued pursuant to the Administrative Procedure Act.

Jonathan McKernan, nominee for CFPB director, said he thought former CFPB Director Rohit Chopra was “on to something” by focusing on data collection issues.