On September 16, 2026, the House Financial Services Committee (Committee) approved H.R. 7866, the American Lending Fairness Act of 2026, legislation introduced by Rep. Warren Davidson (R-Ohio) and Rep. Andy Barr (R-KY) that would address the effect of state opt-outs under Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) on interest-rate exportation by state-chartered banks and credit unions located outside an opt-out state and making loans to a resident of the opt-out state.… Continue Reading
Fair Lending
MBA Sues New Jersey Over Disparate Impact Rule
The Mortgage Bankers Association (MBA) recently filed a lawsuit in the U.S. district court for the district of New Jersey challenging the disparate impact rules adopted by the state.
In December 2025, the New Jersey Division on Civil Rights (DCR) adopted Rules Pertaining to Disparate Impact Discrimination under the New Jersey Law Against Discrimination.… Continue Reading
House Financial Services Committee to Consider H.R. 7866 and the Intended Scope of DIDMCA’s Opt-Out Provision
By Alan S. Kaplinsky & Burt M. Rublin on
Hearing will focus on whether Section 525 permits an opt-out state to regulate loans made by out-of-state state banks
On Wednesday, September 2, the House Financial Services Committee will hold a hearing entitled “Strengthening the American Economy: Promoting Growth, Opportunity, and Prosperity.” The hearing will begin at 10:00 a.m. ET in Room 2128 of the Rayburn House Office Building.… Continue Reading
Interagency Special Purpose Credit Program Statement Rescinded
As previously reported, in February 2022, eight federal agencies issued an Interagency Statement encouraging the offering of special purpose credit programs (SPCPs) under the Equal Credit Opportunity Act (ECOA). The agencies were the CFPB, FDIC, OCC, Fed, NCUA, HUD, DOJ, and FHFA. Seven of the agencies have now rescinded the Interagency Statement.… Continue Reading
Illinois Enacts Disparate Impact Standard for Credit Decisions: What Lenders Need to Know
Posted in Fair Credit, Fair Lending
Introduction
Illinois has joined a growing number of states that are expanding fair lending obligations at the state level even as the federal government moves in the opposite direction. On July 31, 2026, SB 3777 became Public Act 104-0744, amending the Illinois Human Rights Act (Act) to prohibit not only intentional discrimination in lending and credit card issuance, but also the use of facially neutral underwriting criteria or methodologies that produce discriminatory effects.… Continue Reading
NFHA Amends Challenge to CFPB’s Regulation B Rule, Adding New Attack on Agency’s Rulemaking Process
The National Fair Housing Alliance (“NFHA”) and three other plaintiffs have amended their lawsuit challenging the CFPB’s recently issued amendments to Regulation B under the Equal Credit Opportunity Act (“ECOA”). The amended complaint, filed August 11, makes several important changes to the complaint originally filed on May 27.
The amendments do not fundamentally alter the plaintiffs’ challenge to the Regulation B rule.… Continue Reading
Lawsuit Challenging CFPB’s Revised ECOA Rule Moves Forward Under Lengthy Summary Judgment Schedule
On May 27, 2026, the National Fair Housing Alliance, Rise Economy, BLDS, LLC, and SolasAI filed a lawsuit in the U.S. District Court for the District of Columbia challenging the Consumer Financial Protection Bureau’s amendments to Regulation B, which implements the Equal Credit Opportunity Act (ECOA). We discussed the lawsuit shortly after it was filed in our June 2, 2026 blog post linked above.… Continue Reading
Court Denies Early Termination of Lakeland Bank Redlining Consent Order
As previously reported, last year the Trump Administration filed a motion in the federal district court for the district of New Jersey to terminate the redlining consent order with Lakeland Bank that was entered into in September 2022 and provided for a five-year term. The redlining consent order was part of the Justice Department focus on redlining during the Biden Administration.… Continue Reading
Today’s podcast episode: Coerced Debt: New York’s Landmark Law and Emerging Trends Nationwide – Part 2
By Ballard CFS Group on
On May 12, 2026, we produced a 90-minute webinar in which we explored one of the most important and rapidly developing issues in consumer financial services law: coerced debt and the emerging legislative efforts designed to address it. The webinar has been re-purposed into a two-part podcast series, the first of which was released this past Thursday, June 11th, and the second of which is being released today, Thursday, June 18th.… Continue Reading
Advocacy Groups and Private Companies File Lawsuit Against Revised ECOA Rule
As expected, advocacy groups and private companies have filed a lawsuit challenging the CFPB’s recent final rule (Final Rule) revising Regulation B, which implements the Equal Credit Opportunity Act (ECOA). The lawsuit was filed in the federal district court for the District of Columbia by the National Fair Housing Alliance, Rise Economy (fka California Reinvestment Coalition), BLDS, LLC and SolasAI.… Continue Reading