Financial Regulation and CFPB

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America First Legal, a conservative legal group closely aligned with President Trump, has filed a petition urging the Consumer Financial Protection Bureau to eliminate its Regulation C requirement that mortgage lenders collect and report applicants’ race and sex. The group argues the rule is unconstitutional and invites discrimination by pushing lenders and regulators to sort borrowers by 'immutable characteristics' in the name of diversity, equity and inclusion, and says lenders should be focused only on creditworthiness. The move is framed as part of Trump’s broader campaign to dismantle DEI initiatives, including an April executive order promoting a 'meritocracy and colorblind society' in credit evaluation. CFPB acting director Russell Vought, who is simultaneously trying to wind the bureau down while courts say only Congress can abolish it, has not yet responded to the petition, and the bureau recently requested $145 million to keep operating under a court order. If the bureau grants the petition and rolls back Regulation C’s demographic reporting, it would mark a sharp turn away from long‑standing fair‑lending data practices used to police redlining and other discrimination in the U.S. mortgage market.