Regulators Reckon with Risky Lenders
The US Consumer Financial Protection Bureau has voluntarily dismissed its lawsuit against Berkshire Hathaway's Vanderbilt Mortgage and Finance, a unit accused of driving borrowers into loans they could not afford. This move is part of the CFPB's broad retrenchment in enforcement, reflecting the Biden administration's efforts to dismantle the agency created by President Obama. The dismissals have significant implications for consumer protection policies and the regulatory landscape.
- The dismissals suggest a shift in priorities among regulators, potentially downplaying oversight of financial institutions that have contributed to predatory lending practices.
- Will this move signal a broader relaxation of regulations on lenders that prey on vulnerable consumers, exacerbating existing social inequalities?