{"id":976,"date":"2024-04-01T17:31:46","date_gmt":"2024-04-01T17:31:46","guid":{"rendered":"https:\/\/legendhorizon.com\/?p=976"},"modified":"2024-04-01T17:46:06","modified_gmt":"2024-04-01T17:46:06","slug":"judge-blocks-biden-administrations-attempt-to-expand-lending-rules","status":"publish","type":"post","link":"https:\/\/legendhorizon.com\/judge-blocks-biden-administrations-attempt-to-expand-lending-rules\/","title":{"rendered":"Judge Blocks Biden Administration\u2019s Attempt to Expand Lending Rules"},"content":{"rendered":"\n<figure class='\"wp-block-image' size-large><img decoding='\"async\"' loading='\"lazy\"' width='\"1024\"' height='\"683\"' src="%5C%22https:%5C/%5C/legendhorizon.com%5C/wp-content%5C/uploads%5C/2024%5C/04%5C/image-4-1024x683.png%5C%22" alt='\"\"' class='\"wp-image-977\"' srcset='\"https:\/\/legendhorizon.com\/wp-content\/uploads\/2024\/04\/image-4-1024x683.png' https: sizes='\"(max-width:'>\n\n\n\n<p>The federal government\u2019s attempt to expand fair lending rules has been blocked for many institutions.\n\n\n\n</p><p>The new rules, which had been due to take effect on April 1, are based on incorrect interpretations of federal law, U.S. District Judge Matthew Kacsmaryk ruled on March 29.\n\n\n\n</p><p>Current rules, for instance, based on the Community Reinvestment Act (CRA), require banks and other lenders to provide services to low- and moderate-income people in the local community. The expanded rules stretch the definition of community to any individuals with whom the lenders do business.\n\n\n\n</p><p>Story continues below advertisement\n\n\n\n</p><p>Government officials alleged that the word \u201centire\u201d before community in the law necessitated a fresh examination of the statute and prompted the new rules.\n\n\n\n</p><p>\u201cTrue, \u2019the word \u2018entire\u2019 &hellip; should not be read out of [the statute],\u201d Judge Kacsmaryk wrote <a href="%5C%22https:%5C/%5C/www.documentcloud.org%5C/documents%5C/24526991-order-in-lending-rules-case%5C%22" target='\"_blank\"' rel='\"noreferrer' noopener>in his ruling. \u201cBut it does not have the effect defendants attribute to it. In modifying \u2018community,\u2019 the word \u2018entire\u2019 merely clarifies that the whole community must be served, it does not change what a \u2018community\u2019 is. If a statutory \u2018community\u2019 is created around every individual customer with whom a bank does business\u2014regardless of whether that customer is within the geography of the bank\u2019s physical presence\u2014the term becomes meaningless and the statute ineffectual.\u201d\n\n\n\n<p>The judge, an appointee of former President Donald Trump, also said the section of the new rules that authorize federal banking agencies (FBAs) to assess deposits, instead of only credit activities, was based on an incorrect reading of the law.\n\n\n\n</p><p>\n\n\n\n</p><p><a href="%5C%22https:%5C/%5C/www.theepochtimes.com%5C/us%5C/federal-courts-adopt-new-policy-in-crackdown-on-judge-shopping-tactic-5606446?ea_src=author_manual&amp;ea_med=related_stories%5C%22">\n\n\n\n<p>He pointed to how the law says the agencies shall \u201cassess the institution\u2019s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods\u201d by taking into account \u201ccapital investment, loan participation, and other ventures undertaken by the institution\u201d provided that these activities \u201chelp meet the credit needs of local communities.\u201d\n\n\n\n</p><p>\u201cNot a single foregoing provision\u2014nor any other CRA provision\u2014authorizes the FBAs to assess deposit products,\u201d he added.\n\n\n\n</p><p>The preliminary injunction blocks the rules for many groups, including the U.S. Chamber of Commerce, which sued over them. The groups said the rules should be blocked as illegal.\n","protected":false},"excerpt":{"rendered":"</p><div class='\"mh-excerpt\"'><p>The federal government\u2019s attempt to expand fair lending rules has been blocked for many institutions. The new rules, which had been due to take effect <a class='\"mh-excerpt-more\"' href="%5C%22https:%5C/%5C/legendhorizon.com%5C/judge-blocks-biden-administrations-attempt-to-expand-lending-rules%5C/%5C%22" title='\"Judge' blocks biden administration attempt to expand lending rules>[&hellip;]\n","protected":false},"author":2,"featured_media":977,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/posts\/976"}],"collection":[{"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/comments?post=976"}],"version-history":[{"count":1,"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/posts\/976\/revisions"}],"predecessor-version":[{"id":978,"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/posts\/976\/revisions\/978"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/media\/977"}],"wp:attachment":[{"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/media?parent=976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/categories?post=976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legendhorizon.com\/wp-json\/wp\/v2\/tags?post=976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}</a></p></div></a></p></a></p></figure>