Texas federal judge blocks updated fair lending rules [View all]
Source: Reuters
March 29, 2024 10:54 PM EDT
March 29 (Reuters) - A federal judge in Texas on Friday blocked enforcement of new regulations adopted during the Biden administration that sought to overhaul how lenders extend loans and other services to low- and moderate-income Americans.
U.S. District Judge Matthew Kacsmaryk in Amarillo, Texas, sided with banking and business groups including the American Bankers Association and U.S. Chamber of Commerce in finding the new rules ran afoul of the Community Reinvestment Act of 1977.
The judge, an appointee of Republican former President Donald Trump, issued a preliminary injunction blocking their enforcement before they could take effect Monday. The agencies and trade groups did not respond to requests for comment.
The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency last year updated their rules enforcing the 1977 fair lending law, which seeks to ensure banks lend in their local communities. Conceived to prevent red lining - a discriminatory practice where banks refuse or offer only limited lending to certain areas or populations, primarily minorities - CRA regulations gauge how well banks service areas where they operate.
Read more: https://www.reuters.com/business/finance/texas-federal-judge-blocks-updated-fair-lending-rules-2024-03-30/
More judge-shopped mess.
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