National CAPACD Outraged by Passage of Senate Bill S.2155
From National Coalition for Asian Pacific American Community Development (National CAPACD)

On March 14, 2018, the U.S. Senate passed S. 2155, the “Economic Growth, Regulatory Relief, and Consumer Protection
Act,” signalling its lack of commitment to protect people of color and seniors from predatory actors in the financial market.
Disguised as a regulatory relief bill, S.2155 rolls back the regulations under the Dodd–Frank Wall Street Reform and
Consumer Protection Act, which were put in place following the financial crisis of 2008. This bill essentially reintroduces
risky practices to the housing market by removing protections against predatory lenders and exempting the vast majority of
lenders from the updated reporting requirements that help protect consumers. National CAPACD is extremely disappointed
that the Senate chose the side of Wall Street over consumers and vulnerable communities.

This bill is a government directive to look the other way as racial discrimination takes place in predatory mortgage
lending
. It excludes about 85 percent of banks and credit unions from complying with recently instated regulation that
improves the data collected by the Consumer Financial Protection Bureau (CFPB) under the Home Mortgage Disclosure Act
of 1975 (HMDA). In effect, mortgage lenders would no longer be required to report the age, race, sex, or credit scores of
applicants and thus, have free rein to engage in discriminatory lending practices.

Communities of color, and particularly AAPIs, are more likely to be targeted by subprime lenders (AAPIs are 2.2 times as
likely as White borrowers to receive subprime loans even after accounting for similar credit profiles). Disaggregated racial
data in mortgage loans allows for a more nuanced understanding of lending practices and patterns across different AAPI
communities. This data  is critical to communities across the country and helps advocates better identify predatory lending
practices that target communities of color, seniors, and those with limited English proficiency. With the passage of S. 2155,
communities of color will again be vulnerable to the practices that led to the financial collapse.

Congress must not further weaken consumer protections that protect AAPIs and other communities of color from
discriminatory lending. National CAPACD sent a letter with AAPI leaders and advocates to members of the U.S. Senate
urging them to vote against this bill. As this bill moves to the House of Representatives, we continue to urge members of
Congress to oppose this bill.

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Dear Senator,
On behalf of the National Coalition for Asian Pacific American Community Development (National CAPACD), and the
undersigned organizations, we urge you to oppose S. 2155, the “Economic Growth, Regulatory Relief and Consumer
Protection Act.”

National CAPACD is a national advocacy organization dedicated to addressing the housing, community and economic
development needs of diverse and growing Asian American and Pacific Islander (AAPI) communities. We are a coalition of
more than 100 community-based organizations, including housing counseling agencies, community development
corporations, preservation agencies, community-based social service providers, and advocacy agencies. Our members are
in 21 states and the Pacific Islands, implementing innovative affordable housing, community development and community
organizing strategies to improve the quality of life of low-income AAPI communities.

Disguised as a regulatory relief bill, S.2155 would undermine the banking regulations put in place following the Great
Recession and it would reintroduce risky practices to the housing market by removing protections against predatory
lenders. We are concerned that this bill would make it easier for racial discrimination in mortgage lending to go unchecked.
As written, the bill would exclude about 85 percent of banks and credit unions from complying from a recent regulation that
improves the data collected by the Consumer Financial Protection Bureau (CFPB) under the Home Mortgage Disclosure Act
of 1975 (HMDA).

Communities of color, including AAPIs, are more likely to be targeted by subprime lenders (AAPIs are 2.2 times as likely as
White borrowers to receive subprime loans even after accounting for similar credit profiles). We have strongly advocated for
the CFPB to ensure that disaggregated data on the AAPI community be included in its HMDA collection so that this type of
discrimination does not go undetected.

Having this information strengthens our ability to collect specific data and establish a more nuanced understanding of
mortgage lending and loan performance patterns across different AAPI communities. This data is critical to communities
across the country as they navigate the complicated process of making the largest investment of their lives, and will help
advocates better identify predatory lending practices that target communities of color, seniors, and those with limited
English proficiency. If S.2155 passes, our communities will again be vulnerable to the practices that led to the financial
collapse.

Congress must not weaken consumer protections that protect the AAPI community and other communities of color. We
therefore urge that you oppose S. 2155. Thank you for your consideration.

Sincerely,
Seema Agnani
Executive Director National Coalition for Asian Pacific American Community Development (National CAPACD)
Asian Pacific American Labor Alliance,
AFL-CIO Japanese American Citizens League
Laotian American National Alliance National Council for Asian Pacific Americans (NCAPA)
National Asian Pacific American Women's Forum (NAPAWF)
Sikh American Legal Defense & Education Fund (SALDEF)
Southeast Asia Resource Action Center (SEARAC)