Links in “Fair Lending”

Here's a report that says the CFPB is preparing to find ways to encourage banks and credit unions to offer small-dollar "rescue" loans, the type of loans other regulators have found to be risky and fraught with fair lending risks. [2/11/16]

What kinds of things are financial institutions doing that send up a flare to the Consumer Financial Protection Bureau in its search for fair lending violations? One good place to look is in the CFPB’s fall 2015 semi-annual report, where the bureau outlined those areas that indicate heightened fair lending risk. In other words, if the CFPB sees signs of these risks at a financial institution, that’s a trigger for them to dig deeper to look for evidence of fair lending violations. [2/2/16]

The director of the CFPB's fair lending office says that fair lending for small business loans is on the CFPB's radar and is the fourth fair lending product priority (after mortgages, auto loans, and credit cards). [10/13/15]

Registration is now open for a free, 90-minute joint agency webinar on Fair Lending. The event, which is being sponsored by the Federal Reserve, is scheduled for Oct. 15^th at 2:00 P.M. EST, will address issues ranging from how to use your data to evaluate fair lending risks to compliance management and pricing to post-origination risks. [9/29/15]

On October 15, 2015, the Federal Reserve System will host a fair lending webinar. Participating agencies will include NCUA, CFPB, the FDIC, the OCC, the DOJ, the Federal Reserve Board, and the Department of Housing and Urban Development. A wide range of subjects will be discussed, including developments in mortgage lending, compliance management, pricing, and the use of data to evaluate fair lending risk. [9/29/15]

Mid-Atlantic lender M&T Bank settles with the Fair Housing Justice Center over allegations that it would "steer" borrowers to particular neighborhoods or loans based on their race or national origin. [9/2/15]

When it comes to discretionary markups on auto loans, nonbank finance companies are hunkering down for some heavy-duty CFPB scrutiny. Here are some steps the smart ones are taking now to avoid getting in fair lending hot water due to, for example, a subsequent analysis that indicates average financing compensation that is 20 basis points higher for a minority group than for a non-Hispanic white consumer group. [8/27/15]

World Acceptance Corporation, which extends small-dollar loans to individuals, then refinances them multiple times, has acknowledged that it is under investigation by the CFPB. Also see this earlier story on the CFPB's two-part investigation. [8/14/15]

HUD announced the release of its final rule entitled Affirmatively Furthering Fair Housing that is designed to equip communities that receive HUD funding with data and tools to help them meet long-standing fair housing obligations in their use of HUD funds. The final rule has received strong affirmation from civic and housing leaders nationwide with highlights presented in the release. [7/10/15]

The HUD announced a new final rule to help communities receiving HUD funding to meet fair housing obligations. The rule creates a streamlined Assessment of Fair Housing planning process to assist in analyzing fair housing choice challenges and determine responses to fair housing barriers. [7/9/15]