Supreme Court Shakes Up Fair Housing & TCPA Enforcement – What Does It Mean for You?
The U.S. Supreme Court just made it harder for federal agencies to dictate how courts interpret key consumer protection laws, including the Fair Housing Act (FHA) and Telephone Consumer Protection Act (TCPA). This decision reshapes the legal landscape for lenders, servicers, and housing providers. Learn how it could affect your compliance, enforcement exposure, and litigation strategy.
In McLaughlin Chiropractic Assocs., Inc. v. McKesson Corp., the Court made clear that agency interpretations are not binding in civil enforcement litigation.
For mortgage companies, this decision introduces both opportunity and risk.
In a Nutshell
The case specifically involved the TCPA and a Federal Communications Commission (FCC) order interpreting it. Lower courts had treated the agency’s order as binding under the Hobbs Act, which channels final agency decisions to appellate courts. But the Supreme Court disagreed, generally holding that:
District courts are not required to defer to an agency’s interpretation of a statute in enforcement cases.
Formal agency orders subject to Hobbs Act review are not automatically controlling.
Agency interpretations may be respected, but not presumed correct. Courts must use ordinary statutory interpretation tools.
Why Should Mortgage Lenders Care?
The Hobbs Act applies to selected federal agency actions, including Department of Housing and Urban Development (HUD) orders under the Fair Housing Act and FCC orders under the TCPA. Accordingly, this ruling directly affects mortgage lenders.
Mortgage lenders should take this decision seriously, especially if they are navigating investigations or enforcement actions in this area:
Compliance playbooks must evolve: Regulatory guidance from the agencies may not carry the weight it once did.
More litigation, fewer one-size-fits-all interpretations: Expect divergent rulings across jurisdictions as district courts apply their own readings of the law.
Legal leverage for industry players: Businesses may now press back harder against overreach in agency interpretations.
Navigating a Fair Housing Act or TCPA Enforcement Action?
We advise mortgage companies, servicers, and housing finance players on how to manage risk in evolving regulatory conditions. If your business is engaged in an enforcement matter, this Supreme Court decision could shift your legal footing.
Let’s talk strategy. Contact troy@garrishorn.com to discuss how this ruling may impact enforcement exposure or litigation approaches.