Judge reverses Trump-era HMDA rule, forcing small mortgage lenders to comply
Judge reverses Trump-era HMDA rule, forcing small mortgage lenders to comply
Abstract
Judge Beryl Howell of the federal District Court in Washington last week vacated a 2020 rule issued by former CFPB Director Kathy Kraninger. Judge Howell called the rule that eased reporting requirements under the Home Mortgage Disclosure Act "arbitrary" and "capricious," in violation of the Administrative Procedure Act. The judge ruled that the bureau overstated the costs to lenders of complying with HMDA reporting requirements for home loans. The bureau did not adequately take into account. The CFPb is reviewing the decision. CFPS has no further comment. The ruling resolves for the time being a complicated regulatory process that began in 2015.
