Trump quietly signs resolution ending Obama-era regulation of auto lending – By Joseph Lawler (washingtonexaminer.com) / May 21 2018
President Trump shunned press Monday and privately signed a resolution undoing an Obama-era regulation on auto lending.
Unlike other high-profile bill signings, Monday’s ceremony was conducted at the White House away from cameras or reporters, with no added commentary from the president.
The measure struck down 2013 guidance from the Consumer Financial Protection Bureau informing financial firms they would be held liable for fair lending laws if they arrange financing with auto dealers. The Obama administration presented the rule as necessary for counteracting discrimination.
Congress’ use of the Congressional Review Act to cancel the guidance is unprecedented, given that it was informal guidance and not an official agency rule.
It also raises the question of what it means to strike down a memo sent from an agency to private businesses. Some experts maintain that the agency could still enforce the underlying law with respect to indirect auto lending.
“I want to make it abundantly clear that the Bureau will continue to fight unlawful discrimination at every turn,” said CFPB acting director Mick Mulvaney. “We will vigorously enforce fair lending laws in our jurisdiction, and will stand on guard against disparate treatment of borrowers.”
Mulvaney, a Trump appointee, applauded the resolution, saying that the guidance was “overreach.” The bureau also suggested that it would work with Congress to help them undo other guidance from the agency.
Republican chairman of the House Financial Services Committee Jeb Hensarling commended the decision after attending the closed-door ceremony.
“Gone are the days of a rogue Bureau using its unchecked powers to sidestep due process and harm the very consumers it is charged with protecting,” he said in a statement.
