Legal Group Calls for End to Mortgage Data Collection on Race and Gender

WASHINGTON — A legal organization associated with former President Trump is urging the White House to abolish the requirement for mortgage lenders to gather information on the race and gender of applicants.

America First Legal (AFL), which was established by Stephen Miller, a deputy chief of staff under Trump, has criticized this rule, labeling it a form of racial “surveillance.” They are pushing for the reinstatement of what they describe as “color-blind” lending practices.

Under current guidelines, if a mortgage applicant does not disclose their race, gender, or ethnicity, lenders must estimate this information based on visual observation.

According to AFL attorney Alice Kass, the rule enforced by the Consumer Financial Protection Bureau (CFPB) “turns the mortgage application into a government-mandated demographic screening exercise.” She further stated that these policies go beyond the CFPB’s authority, requiring the collection of sensitive personal information without legitimate justification.

This policy was initially designed to gather information aimed at combating discrimination in housing.

Trump’s administration has made multiple attempts to dismantle or minimize the powers of the CFPB, although federal courts have not supported these initiatives.

AFL formally requested the White House Office of Information and Regulatory Affairs (OIRA) to halt the approval of this rule, which originates from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

The White House is currently grappling with federal disclosure regulations established under the Paperwork Reduction Act of 1980. This law allows the government to repeal rules that it finds overly burdensome for Americans.

AFL contends that OIRA has the authority to either limit the rule’s scope or eliminate it altogether.

Supporters of Trump consider recent Supreme Court decisions, such as the case involving Harvard University, as a foundation for their call to end the collection of race and gender data.

Additionally, Trump had signed an executive order last year aiming to direct his administration to adopt policies that do not consider race.

AFL’s petition asserts, “Government bureaucrats are using [the rule] to justify penalizing mortgage lenders who don’t adhere to race and gender balances.” They argue that this rule serves as a “surveillance tool” that pressures lenders into favoring applicants based on government-mandated ratios rather than qualifications.

They assert that this burden hampers free enterprise and prioritizes social engineering over financial performance.