October 19, 2021

Volume XI, Number 292

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October 19, 2021

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October 18, 2021

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Credit Union Files Reply Brief in SDNY Case Challenging Mulvaney’s Appointment

On December 29, 2017, the Lower East Side People’s Credit Union (“People’s”) filed a reply brief in support of its preliminary injunction motion in which it seeks to block the appointment of Mick Mulvaney as the Acting CFPB Director. The arguments were largely the same as those advanced in its motion.

The one exception is that People’s spent considerable time arguing that Mulvaney’s decision to pause HMDA-related enforcement actions was causing People’s concrete harm. Banks know that regulators use HMDA data to evaluate Community Reinvestment Act (“CRA”) compliance. People’s claims that, to satisfy their CRA obligations, Banks often make deposits at People’s that pay no or low interest. People’s uses those deposits to make loans in the community.  People’s argued that Mulvaney’s policy with respect to HMDA enforcement will give banks an incentive to falsify their HMDA data to appear compliant with the CRA without actually making the deposits. This, People’s argues, will have an adverse interest on its bottom line. To call the argument “strained” is beyond generous.

Copyright © by Ballard Spahr LLPNational Law Review, Volume VIII, Number 5
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About this Author

Flo, Washington DC, Ballard Spahr
Associate

A client-focused litigator and enforcement attorney, with extensive experience in the financial-services, technology, and real estate industries. Theodore R. ("Teddy") Flo represents lenders, technology companies, start-ups, corporate executives, and real estate service providers in local and national litigation, arbitration, and government investigations. While focused on investigations before the CFPB, he also represents clients before the SEC, DOJ, HUD, CFTC, and state regulators.

Teddy delivers practical cost-effective results for his clients through creative thinking and...

202-661-2259
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