…The case began in 2020 when the #CFPB accused Townstone of #redlining & breaking fair-lending laws by discouraging residents living in majority-#Black neighborhoods from applying for its #housing #loans. It homed in on comments made during the company’s radio show & podcast, “The Townstone Financial Show,” saying they were intended to rebuff Black borrowers or those seeking to buy homes in certain neighborhoods.

“Nobody is helped by shutting down the agency, except #BigBanks, #ConMen & rip-off artists, oh & #billionaires like Mr. Musk, who is trying to start a new ‘#XMoney’ feature on his social media platform,” Sen #ElizabethWarren said at the hearing. “By eliminating the #CFPB, he would take the financial cop off the beat.”

But on Thurs, the #Trump #CFPB dropped several complaints against financial institutions, including the ones for #CapitalOne & #RocketHomes.

“We welcome the CFPB’s decision to dismiss this action, which we strongly disputed,” a spokesperson for Capital One said in an emailed statement.

In a statement, Rocket Homes said: “This case was a misrepresentation of the facts, as we have said from the day the suit was filed.”

A month earlier, the #CFPB filed a lawsuit against #RocketHomes Real Estate, alleging that the company incentivized real estate brokers & agents to steer home buyers to #RocketMortgage.

“At a time when #homeownership feels out of reach for so many, companies should not illegally block competition in ways that drive up the cost of #housing,” said then-CFPB Dir Rohit Chopra in announcing the action.

#Trump #Musk #law #economy #regulation #banks #credit #loans #kleptocracy
https://www.consumerfinance.gov/about-us/newsroom/cfpb-files-lawsuit-to-stop-illegal-kickback-scheme-to-steer-borrowers-to-rocket-mortgage/

In one of its final actions under the #Biden admin, for example, the #CFPB filed a lawsuit on Jan 14 against #CapitalOne, alleging the financial institution misrepresented its “360 Savings” accounts, effectively “cheating consumers out of more than $2B in interest payments.”

#Trump #Musk #DOGE #law #economy #regulation #banks #credit #loans #mortgages #foreclosures #debt #housing #markets #USpol #kleptocracy #plutocracy
https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-capital-one-for-cheating-consumers-out-of-more-than-2-billion-in-interest-payments-on-savings-accounts/

When harmed, the average #consumer often doesn’t have the #money to defend themself. Hiring an attorney is expensive. Rooting out deceptive predatory practices should be left to the #government, not a family trying to make ends meet.

Remember the Great #Recession?

During his first term, #Trump was hell-bent on eviscerating the authority of an agency that #Congress authorized to protect #consumers after the 2008 financial crisis. His choice to lead the agency in 2017 signaled his disdain: Mick Mulvaney, a fmr congressman who voted to abolish the #CFPB.

…But consumers needed then — & need now — a powerful advocate.

Hall said Krause, Ramada & Hogan need unrestrained access to personal #information such as #SocialSecurity numbers & #BankAccount information to evaluate systems of records & programs in their aim to “better modernize.”

She also said Ramada’s team is responsible for assessing the #StudentLoan system & may need access to borrowers’ incomes to understand their ability to repay their #loans.

Some of the money that has been frozen is tied to #environmental #conservation programs that were funded by President #Biden's signature #climate #law, the 2022 Inflation Reduction Act, which included about $19.5B for #farm programs over 10 yrs.

The #Trump White House said its Jan 27 proposal to freeze federal #loans & #grants would not affect programs for #farmers. The admin rescinded its proposal & it has been temporarily blocked in court.

Untold numbers of front-line #health workers in the #Veterans Affairs Department, officials who process #loans for homebuyers or small businesses, & contractors who help procure the next generation of #military weaponry could all head for the exits at once. It could also mean losing experienced #food inspectors & #scientists who test the #water supply — while disrupting everything from #airTravel & #consumer #product #protections.

More on #Trump’s #ExecutiveOrder to freeze federal #grants & #loans

"This order is a potential 5-alarm fire for #nonprofit organizations & the people & communities they serve. From pausing #research on cures for childhood #cancer to halting #FoodAssistance, safety from #DomesticViolence, & closing #suicide hotlines, the impact of even a short pause in funding could be devastating & cost lives,” Diane Yentel, president & CEO of the National Council of Nonprofits, said.

https://www.reuters.com/world/trump-orders-pause-all-federal-grants-loans-2025-01-28/