Mulvaney revokes powers of CFPB’s fair lending office

The office will no longer be able to pursue and penalize those who discriminate against mortgage borrowers

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Inman Connect San Francisco, Jul 16-20, 2018

The division of the Consumer Financial Protection Bureau that was tasked with ensuring that lenders don't discriminate against Americans based on race, religion, sex and other factors, has been stripped of its enforcement power by the CFPB's acting director, Mick Mulvaney, appointed last year by President Trump. The CFPB told secrecy-minded website The Intercept, which broke the news earlier this week, that the adjustment will improve efficiency and that the bureau will continue to enforce fair lending regulations, just not through its Office of Fair Lending and Equal Opportunity (OFLEO). The news comes on the heels of Mulvaney requesting $0 for the agency's budget in 2018 and the agency dropping lawsuits against four payday lenders. Consumer advocates said the latest move would make disadvantaged borrowers more vulnerable to bias. Lenders have a long history of rejecting or overcharging people of color at higher rates than white Americans with the same qualifications. ...