A federal judge rejected an “unprecedented” request to vacate a Biden-era settlement between the Consumer Financial Protection Bureau and a Chicago mortgage lender accused of making racist comments aimed at discouraging Black borrowers. https://t.co/NXcCb1JAK4
A federal judge in Chicago on Thursday refused to allow the U.S. Consumer Financial Protection Bureau to vacate a racial discrimination settlement reached last year with a mortgage lender, finding there was no basis for granting an extraordinary request. https://t.co/7ghWJhl8pa
BREAKING: A federal judge rejected the CFPB's request to undo a settlement it reached last year in a fair lending case involving a Chicago mortgage broker, which the Trump administration had maintained was targeted because of the owner’s political views. https://t.co/xktxw2K15U
The Consumer Financial Protection Bureau’s acting enforcement director, Cara Petersen, has resigned, arguing that sweeping changes ordered by President Donald Trump have left the watchdog unable to police consumer abuses. Petersen called the policy shift “devastating,” telling colleagues the bureau now has “no intention to enforce the law in any meaningful way.” Her exit follows the February dismissal of CFPB Director Rohit Chopra and deepens uncertainty at an agency created after the financial crisis to oversee banks, lenders and debt collectors. The Federal Reserve’s inspector general has opened a review into the administration’s efforts to curb the bureau’s powers, adding to mounting scrutiny from lawmakers and consumer advocates. Meanwhile, a federal judge in Chicago refused the CFPB’s request to vacate a settlement reached last year with a local mortgage lender accused of discriminating against Black borrowers, calling the move an extraordinary step lacking legal basis. The attempt, described by the court as “unprecedented,” has encouraged other companies to seek reversals of their own agreements with the regulator. Despite the internal turmoil, the CFPB has continued to bring new cases, including a lawsuit seeking $3.4 million in restitution over alleged illegal advance fees charged by a debt-relief firm. Critics, however, say the pace and ambition of enforcement have diminished sharply since the administration’s overhaul began.