Pro-Trump Groups Urge CFPB to Drop Demographic Reporting

Pro-Trump legal organizations are pushing the Consumer Financial Protection Bureau (CFPB) to remove requirements for demographic reporting, claiming this rule could permit lenders to factor in applicants’ race and gender in the name of diversity and inclusion efforts.

America First Legal, which submitted the petition discovered by Fox News Digital, believes the CFPB should motivate mortgage lenders to concentrate solely on the creditworthiness of homebuyers. They argue that Regulation C, which mandates lenders to monitor and disclose the race and gender of applicants, is unconstitutional.

“Revealing such information puts borrowers at risk of discrimination based on race and gender, which violates federal civil rights law and the Constitution,” representatives from America First Law stated.

This petition is part of a wider initiative led by former President Donald Trump to counteract diversity, equity, and inclusion (DEI) practices in both public and private sectors. In April, Trump signed an order advocating for a “meritocracy and colorblind society,” which targeted agencies that assess credit.

DEI has become a framework for businesses, educational institutions, and government agencies to promote equitable treatment for minorities. However, conservatives often argue it can unfairly favor certain groups.

America First Legal contends that Regulation C contradicts the administration’s efforts to dismantle DEI initiatives prevalent in various industries. Their petition asks the CFPB to officially initiate a deregulation process.

According to America First Attorney General Gene Hamilton, “The federal government lacks the authority to compel Americans to disclose their race or gender when applying for a mortgage. Regulation C coerces lenders to categorize borrowers based on unchanging traits, facilitating discrimination masked as ‘fairness.’

The CFPB, established by Congress following the 2008 financial crisis, was designed to handle consumer complaints related to mortgages and various other loans.

Since its creation, Republican leaders have criticized the agency as a rogue body imposing excessive regulations on financial institutions. The agency’s acting director, Russell Vought, has aimed to eliminate the CFPB entirely, but courts have blocked these efforts, asserting that only Congress can abolish it. Despite challenges, the CFPB has filed reports through the end of the previous year and continues to operate, with Vought recently requesting an additional $145 million in funding to comply with a court order.