Reassessing Legal Actions: A New Direction

As the new administration takes office, there is precedent for the Attorney General to reconsider and potentially reverse legal actions initiated by previous administrations. Recent activity from Acting Solicitor General Sarah Harris reflects this trend, as she has filed motions urging the Supreme Court to pause litigation on federal policies that are likely to undergo substantial changes.

Key Legal Cases Under Review

Notably, in the case of Department of Education v. Career Colleges and Schools of Texas, Harris has requested a hold on proceedings due to anticipated changes in student loan repayment policies anticipated under the new administration. She believes that it would be inappropriate for the Supreme Court to issue a ruling on this matter while substantial policy shifts are in the works.

Similarly, in Diamond Alternative Energy v. US Environmental Protection Agency, a motion has been filed to reassess the regulatory framework surrounding carbon emissions and ozone pollution. The revised focus of the EPA suggests the need for a pause on the legal processes currently underway.

Controversy in Housing Policy Reform

A significant area of concern involves the Department of Justice’s (DOJ) recent lawsuit against prominent mortgage companies, including Rocket Mortgage. This case alleges racial discrimination tied to the appraisal processes affecting Black homeowners. The DOJ claims that Rocket Mortgage failed to address biases during appraisals, a position countered by Rocket, which argues that federal law restricts their ability to intervene in these processes.

The legal framework established by the Dodd-Frank Wall Street Reform and Consumer Protection Act underscores the necessity for appraiser independence from mortgage lenders. This separation serves to maintain integrity within the housing market and mitigate the risk of inflated housing prices, a response rooted in the lessons learned from the 2008 financial crisis.

Political Implications on Housing Affordability

The ongoing legal actions taken by the DOJ have drawn criticism for potentially undermining the objective of making homeownership more accessible. Critics argue that the current administration’s approach could exacerbate housing affordability issues, which have already been problematic for many Americans.

Former President Trump emphasized during his inaugural address the importance of leveraging governmental resources to combat inflation and reduce living costs, including housing expenses. The current trajectory of legal actions initiated by the Biden administration has raised concerns regarding their impact on these goals and the well-being of American voters.