Fair Lending Developments Under Trump 2.0 – Part 1

Nov 13, 2025

Guest

John Culhane Jr.

Guest

Richard Andreano Jr.

Guest

Brad Blower

John Culhane Jr., veteran fair lending lawyer and former government attorney. Richard Andreano Jr., mortgage banking and fair lending leader with decades of experience. Brad Blower, housing policy advisor focused on fair lending and compliant AI use. They discuss major Trump 2.0 shifts in fair lending policy, the move from statistical to intent-based redlining probes, states filling enforcement gaps, and how AI and Reg B changes could reshape compliance.

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INSIGHT

Shift From Statistical To Intent Based Enforcement

The Trump 2.0 administration has shifted federal fair lending policy from statistical enforcement to intent-focused enforcement.
Agencies removed references to disparate impact and scaled back CFPB enforcement, signaling fewer cases based solely on statistics like proportional distribution tests.

ADVICE

Reassess AI Governance And Explainability

Evaluate AI and model governance expectations in light of the CFPB rescinding prior AI guidance and the administration's pro-innovation AI plan.
Maintain explainability and consumer-facing reasons now, but plan for lighter federal enforcement focus.

INSIGHT

Special Purpose Credit Programs Face Reconsideration

The administration is reconsidering Special Purpose Credit Programs and HUD guidance linking ECOA and Fair Housing Act protections.
HUD removed prior guidance and advocates worry SPCP protections may be re-evaluated or narrowed.

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Today's episode marks the first of a two-part series, with Part Two scheduled for release on November 20th. In this installment, we examine the sweeping changes in fair lending policy and enforcement under the second Trump administration.

The discussion is moderated by Alan Kaplinsky, Senior Counsel, founder and former chair for 25 years of Ballard Spahr's Consumer Financial Services Group, and features these distinguished experts in the field:

Bradley Blower, Founder of Inclusive Partners LLC.
John Culhane, Jr., Senior Partner and charter member of Ballard Spahr's fair lending team.
Richard Andreano, Jr., Practice Group Leader for Ballard Spahr's Mortgage Banking Group and the head of Ballard Spahr's fair lending team.

Listeners will gain essential insights on how federal agencies are scaling back oversight, phasing out the use of statistical disparities and disparate impact theory in fair lending cases. The conversation illuminates how redlining investigations are now driven by clearly expressed intent rather than just the numbers, and why states are stepping in as the federal role diminishes. The episode also tackles potential regulatory changes, the move back to the 1995 Community Reinvestment Act rule, and what these shifts mean for institutions and the communities they serve.

In addition, the hosts unpack high-profile cases like Townstone Financial, diving into the ongoing debate about whether discouraging would-be applicants is covered under the Equal Credit Opportunity Act. They also address the intersection of AI and the economy, examining the Trump administration's focus on rapid innovation over regulatory restrictions and its implications for consumer protection. With actionable information for professionals in consumer financial services, banking, compliance, and advocacy, this episode keeps you informed on the latest policies shaping fair lending in 2025 and beyond.

We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.