(POLITICO) Zachary Warfront, May 22, 3018 — President Donald Trump on Monday signed legislation that will undo a 2013 effort by the Consumer Financial Protection Bureau to discourage discrimination in auto lending.

Guidelines issued by the consumer bureau outlined steps that lenders should take to address discrimination by auto dealers, who often determine the terms for car loans that they help facilitate for their customers.

With the backing of auto dealers and lenders, Republicans who drove the rollback argued that the CFPB should have followed formal rule-making procedures and sought more public feedback before issuing the guidelines. The 2010 Dodd-Frank law prohibits the bureau from regulating auto dealers. The CFPB guidance was addressed to lenders that fall under the bureau’s jurisdiction.

CFPB acting Director Mick Mulvaney praised the move to rescind what he called a “misguided” initiative by his predecessor, who was appointed by President Barack Obama.

“I am heartened that the people, through their elected representatives, have corrected this instance of Bureau overreach,” Mulvaney said in a statement.

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