CFPB Fair Lending Report Released

The CFPB Fair Lending Report, December 2012, discussed the first year accomplishments and issues in Fair Lending.

The Dodd-Frank Act vests the CFPB with specified supervisory, enforcement, and rulemaking authority with respect to a number of federal consumer financial laws, including ECOA and HMDA.  ECOA has broad coverage, prohibiting discrimination in mortgage lending and a wide array of other types of lending, including auto finance, credit cards, business loans, and unsecured loans. HMDA requires that specified mortgage lenders annually collect and report mortgage lending data in order to determine whether institutions are serving the housing needs of their communities, to aid in targeting public investment, and to identify possible discriminatory lending patterns and enforce fair lending laws.

Additional Requirements included:

Establishment of the Office of Fair Lending and Equal Opportunity. Congress
required the creation of the Office of Fair Lending and Equal Opportunity within the
CFPB,

Rulemaking

  • ECOA – to “facilitate enforcement of fair lending laws and enable communities,governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses” (Dodd-Frank Act § 1071);
  • HMDA – to require mortgage lenders to collect and report additional data fields(Dodd-Frank Act § 1094); and
  • The Truth in Lending Act (TILA) (15 U.S.C. § 1602) – to “prohibit . . . abusive or unfair lending practices that promote disparities among consumers of equal credit worthiness but of different race, ethnicity, gender, or age” (Dodd-Frank Act§ 1403).

Reports to Congress.

Most frequently cited Regulation B violations by FFIEC Agencies

2012 CFPB Fair Lending Report