Major Flaws in CFPB’s Disparate Impact Auto Lending Study

The industry is picking up on a recent report that the CFPB's study used to make its claims of disparate impact on minority borrowers for auto loans was fatally flawed. The study found that the report overestimated African Americans by more than 40%. "If the agency doesn't know a borrower's race accurately, it casts doubt on whether it can detect racial bias." The CFPB counters that there are problems with the study. (Subscription required. To read an unlocked report of the underlying study, click here.) [12/8/14]