Treasury Inspecting ‘Predatory’ Practices by Community Lenders

The Treasury Department opened a review of potential abuses by community banks, credit unions, and other lenders that receive federal funding, as the Trump administration moves to block the money from supporting noncitizens or diversity efforts.

The review is intended to ensure that lenders funded through the Community Development Financial Institutions Fund are complying with all applicable laws, the Treasury Department said in a Monday statement. The CDFI Fund is located within Treasury.

“CDFIs that engage in predatory practices and take advantage of the very communities they are intended to serve will be reviewed and, where appropriate, held accountable,” Treasury ...