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WASHINGTON, D.C. – Today, America First Legal (AFL) filed a petition urging the White House Office of Information and Regulatory Affairs (OIRA) to withdraw approval of the Consumer Financial Protection Bureau’s (CFPB) Regulation C information collection, a federal rule that mandates the collection of mortgage applicants’ race, ethnicity, and sex under the Paperwork Reduction Act (PRA).
This request follows a formal petition for rulemaking AFL filed on January 12, asking the CFPB to rescind Regulation C entirely. This new petition specifically asks OIRA to exercise its authority under the PRA to substantially narrow the CFPB’s demographic data collection, arguing that Regulation C exceeds the Bureau’s statutory authority and imposes unjustified privacy and compliance burdens.
Under CFPB’s Regulation C, lenders must ask applicants to disclose their race and sex, and, if they decline, lenders may assign those characteristics based on visual observation and surname analysis. This practice exposes applicants to serious privacy risks, imposes substantial burdens, and facilitates race- and sex-based discrimination.
In light of the U.S. Supreme Court’s recent rejection of race-based decision-making and President Trump’s Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy,” AFL’s petition explains that this demographic data collection lacks lawful justification and encourages racial cataloging over merit.
“Regulation C turns mortgage applications into a government-mandated demographic sorting exercise,” said Alice Kass, Attorney at America First Legal. “These policies exceed the CFPB’s authority and compel the collection of protected personal information without legal justification. OIRA must exercise its authority and revoke its approval of this unlawful data collection.”
AFL’s petition urges OIRA to withdraw approval of the CFPB’s demographic data collection or require substantial narrowing and justification under the law, restoring neutral, colorblind, merit-based lending policies.
Read the full petition to OIRA here.
Read more about AFL’s fight to restore equality here.
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