Banks Fear CFPB Rule Could Spur Fair Lending Fights

Law360, New York (February 21, 2013, 7:47 PM EST) -- As banks prepare to implement the Consumer Financial Protection Bureau's new mortgage standards, attorneys say lenders should brace for the possibility that issuing home loans only to those who qualify under a strict reading of the new rules could expose them to claims of lending discrimination and stiff financial penalties.

Lenders say that the tension between the need for improved loan quality and extending mortgage credit to lower credit borrowers is likely to increase once new CFPB rules outlining which high-quality loans will qualify for a...
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