Rules that the president’s administration expanded the geographic loan requirements too far.
District Judge Matthew Kacsmaryk ruled that President Biden’s administration went too far in its bank loan regulation update that expanded the geographic area requirements for bank loan services.
The update changed the enforcement of the Community Reinvestment Act of 1977, a law that intended to prevent redlining, a tactic used to withhold bank loans and mortgages from low-income communities. Since banking is now primarily done online, the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency sought to expand the geographic area bank branch locations are required to serve, since there had been a decline in physical banking locations operationing in the U.S.
Banking and business groups, including the U.S. Chamber of Commerce, sued President Biden’s administration for the expansion, saying that the government does not have the authority to assess the retail lending of banks, which were included in the new update. Judge Kacsmaryk agreed, issuing a preliminary injunction to block the enforcement of the new policy.
As the Lord Leads, Pray with Us…
- For wisdom for district court and appellate court judges as they hear and rule on cases on government authority.
- For the justices of the Supreme Court to be discerning as they deliberate over the oral arguments they have heard and craft decisions.
Sources: Reuters, American Banker
