CFPB’s Legitimacy is Incontrovertible, National Fair Housing Alliance Says As the Supreme Court Hears Oral Arguments
FOR IMMEDIATE RELEASE
October 3, 2023
Contact: Janelle Brevard | jbrevard@nationalfairhousing.org
Washington, D.C. — Today, the National Fair Housing Alliance® (NFHA™) released the following statement by Executive Vice President Nikitra Bailey regarding oral arguments before the Supreme Court about the constitutionality of the Consumer Financial Protection Bureau (CFPB).
“The CFPB plays a critical role in ensuring fair treatment for all and protecting consumers’ financial interests. After corporate greed and lax regulations resulted in communities of color being targeted with predatory mortgage loans during the subprime mortgage boom, which resulted in unneccesary foreclosures costing Black and Latino communities $1 trillion in wealth, NFHA pushed for the creation of the CFPB and its Office of Fair Lending and Equal Opportunity. Since its founding, the CFPB has taken significant action to protect everyday people and America’s most vulnerable consumers, including immigrants, people of color, veterans, and low-wealth families. Its enforcement actions have been extremely effective at holding financial institutions accountable. In fact, in just 12 short years, CFPB’s critical action on junk fees, consumer data protection, medical debt, and student loan servicing and lending, and more has enabled it to return over $17.5 billion to American consumers who had been harmed. Additionally, the CFPB issued an advisory opinion on the ability of for-profit lenders to use Special Purpose Credit Programs to ensure equitable access to credit for consumers and communities of color and other protected classes, to help them address centuries of discriminatory housing and financial policies.
Further, the CFPB has acted as a thought leader on ensuring AI-driven decisions comply with the nation’s fair housing and lending laws. Technology is the new civil and human rights frontier and technology bias, including in artificial intelligence, credit reporting, and automated valuation models, undermines fairness.
The CFPB’s legitimacy is incontrovertible. Its funding structure is similar to funding structures at other banking regulators. The Supreme Court must not cave to the desires of unscrupulous payday lenders who charge triple digit interest rates and gut the Bureau’s effectiveness. Instead, it is critical that the Court ensure the CFPB is able to continue to serve as an effective advocate and protector of everyday consumers.”
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.