CFPB defends scope of SAFE Act exemption for nonprofits

A nonprofit community advocacy group that provides mortgage services filed a lawsuit targeting government rules implementing the Secure and Fair Enforcement for Mortgage Licensing Act. The Neighborhood Assistance Corp. of America argued regulators specifically structured the rules in a manner that would punish NACA for advocacy that had seen the organization at odds with the government.

NACA brought claims against the government under the Administrative Procedures Act, arguing regulators failed to give proper notice before crafting a SAFE Act exemption the group felt should have been structured to cover their organization. Read on to learn how the Consumer Financial Protection Bureau responded to the claim and what the court decided.