NFHA Issues Statement Denouncing Fifth Circuit Court Decision on CFPB Funding
FOR IMMEDIATE RELEASE
October 20, 2022
Contact: Izzy Woodruff | 202-898-1661 | iwoodruff@nationalfairhousing.org
Washington, D.C. — Nikitra Bailey, Executive Vice President of the National Fair Housing Alliance (NFHA), issued the following statement regarding an appeals court ruling on Wednesday that the Consumer Financial Protection Bureau (CFPB)’s funding mechanism is unconstitutional:
“We are deeply disappointed by the court’s decision on the CFPB’s funding. NFHA was one of the key leaders that worked to create the CFPB after the Housing Crisis of 2008 ravaged communities of color and triggered the Great Recession, resulting in a loss of $1 trillion in wealth for Blacks and Latinos. Because of the impact of the crisis, NFHA played a leading role in developing the CFPB’s Office of Fair Lending and Enforcement. Sadly, attacks from industry started even before the Bureau was set up. This is because the CFPB is the first financial regulator in our nation’s history that is explicitly tasked with protecting the financial health and fair treatment of people and families, not only those of financial institutions. In 2017, payday lenders fought against a CFPB rule that would have held lenders accountable and protected consumers from predatory loans. Challenges against the Bureau like this are a continuation of ongoing attacks to undermine the agency’s legitimacy and efficacy. The reality is that the CFPB is an extremely effective agency whose enforcement actions, as of 2021, have held financial institutions accountable and returned $13.5 billion back to consumers that faced financial abuse. Furthermore, the agency’s funding structure is not unique for a banking regulator, and it was put in place to ensure that the agency’s ability to help consumers was not subject to political whims. We must make sure it stays that way.”
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The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for over 170 fair housing and justice-centered organizations and individuals throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.