Public court records, CFPB announcements

Federal Appeals Court Expands CFPB's Authority to Combat Redlining

Jul 11, 2024, 09:45 PM

A federal appeals court has granted the US Consumer Financial Protection Bureau (CFPB) greater authority to combat housing discrimination, specifically targeting practices like redlining. The court's decision revives the CFPB's first case against a non-bank mortgage lender, emphasizing that lenders cannot use discriminatory language or other methods to discourage potential borrowers from applying for loans. This ruling overturns a previous decision by a Democratic judge, clarifying that the Equal Credit Opportunity Act applies to lenders who discourage borrowers from seeking credit.