WASHINGTON — America First Legal filed a formal petition urging the Consumer Financial Protection Bureau to eliminate a federal rule that forces mortgage lenders to collect the race and sex of every home loan applicant.
The petition, first reported by Fox News Digital, targets the CFPB’s Regulation C. The rule requires lenders to track and report demographic information on borrowers. America First Legal argues the mandate is unconstitutional and opens the door to discrimination.
“The federal government has no business forcing Americans to disclose their race or sex as a condition of applying for a mortgage,” America First Legal President Gene Hamilton said in a statement. “Regulation C pressures lenders to sort borrowers by immutable characteristics and invites discrimination under the guise of ‘equity.'”
The group’s petition functions as a formal request for the CFPB to begin the rulemaking process to kill the regulation entirely.
America First Legal contends the rule conflicts with President Donald Trump’s executive order from April calling for a “meritocracy and colorblind society.” That order specifically targeted agencies responsible for evaluating credit.
“The disclosure of this information leaves applicants vulnerable to race- and sex-based discrimination by government and private actors in violation of federal civil rights law and the Constitution,” the group wrote in its filing.
Regulation C has been on the books since the CFPB’s creation following the 2008 financial crisis. Congress established the bureau to investigate complaints about mortgages, loans and other consumer banking activity.
Republicans have targeted the agency for years, calling it a rogue regulator that burdens financial institutions with unnecessary rules. Acting CFPB Director Russell Vought has tried to shut the bureau down entirely, but federal courts have blocked those efforts, ruling that only Congress has the authority to eliminate the agency.
Vought recently requested $145 million in additional funding to keep the CFPB compliant with a court order requiring it to remain operational. The bureau has continued filing reports through late last year.
The petition is part of a broader push by the Trump administration to dismantle diversity, equity and inclusion programs across the federal government and private sector. Trump signed an executive order in April directing agencies to restore “equality of opportunity” and move away from race-conscious policies.
DEI frameworks were adopted by companies, schools and government agencies to promote equal treatment for minorities. Critics, including most Republican lawmakers, argue the programs amount to preferential treatment based on race and sex rather than merit.
America First Legal wants mortgage lending to return to a single standard: creditworthiness. The group says lenders should evaluate applicants based on their financial qualifications, not their demographics.
The CFPB has not publicly responded to the petition.
