On May 2, the U.S. District Court for the Southern District of Florida denied a mortgage lender’s motion to dismiss. The CFPB sued the lender in October 2023 for violating HMDA and Regulation C by intentionally misreporting data regarding borrower race, ethnicity, and sex pursuant to a data reporting requirement from a prior consent order. In a sample of the defendant’s data reporting submission, the CFPB allegedly found 51 data errors across seven data fields. The court sided with the CFPB on all four grounds raised in the lender’s motion to dismiss. First, the court found that the CFPB pleaded a plausible violation of the HMDA, sufficient to survive a motion to dismiss. Second, the court rejected the lender’s arguments that HMDA and Regulation C are “unconstitutionally vague” because they established a standard for covered loan data that meets a constitutional standard. Third, the court sided again with the CFPB in finding that the injunctive relief at issue did not qualify as an “obey the law” injunction since it provided reasonable clarity of what was required of the lender. And fourth, the court upheld the funding structure of the CFPB as constitutional, therein following guidance from the Second Circuit in upholding the structure as constitutional.