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Category Archives: Fair Lending

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CFPB issues Fall 2016 Supervisory Highlights; Ballard to hold Dec. 2 webinar

Posted in Auto Finance, CFPB Exams, Credit Reports, Debt Collection, Fair Lending, Mortgages

In its Fall 2016 Supervisory Highlights, which covers supervision work generally completed between May and August 2016, the CFPB highlights violations found by its examiners involving origination and servicing of auto financing, debt collection, mortgage origination and servicing, student loan servicing, and fair lending. On December 2, 2016, from 12 p.m. to 1 p.m ET,… More >

CFPB builds case for ECOA protection for gender identity and sexual orientation; Ballard to conduct Nov. 3 webinar

Posted in Fair Lending

While CFPB officials have suggested in public remarks that the Equal Credit Opportunity Act’s prohibition against discrimination on the basis of “sex” includes discrimination based on gender identity and sexual orientation, a letter dated August 30, 2016 from Director Cordray goes further by describing how, in the CFPB’s view, current law provides strong support for… More >

CFPB highlights impact of student debt on communities of color

Posted in Fair Lending, Student Loans

In a new blog post, the CFPB states that recent research “underscores the disproportionate impact of student debt on communities of color.”  According to the CFPB, federal government data shows that over 90 percent of African-American and 72 percent of Latino students leave college with student loan debt, compared to 66 percent of white students… More >

Diversity assessment and remedial measures required by CFPB consent order

Posted in Diversity and Inclusion, Fair Lending

On June 29, 2016, BancorpSouth Bank announced a proposed settlement and consent order with the CFPB and the U.S. Department of Justice of charges that the bank’s mortgage lending practices violated the Equal Credit Opportunity Act and Fair Housing Act by redlining majority-minority neighborhoods in the Memphis MSA and illegally discriminating against African Americans in… More >

CFPB and DOJ settle fair lending claims involving allegations of redlining, discretionary underwriting and pricing, and overt discrimination

Posted in CFPB Enforcement, Fair Lending

The CFPB and DOJ recently announced a proposed consent order with BancorpSouth Bank to settle charges that the bank’s mortgage lending practices violated the Fair Housing Act and the Equal Credit Opportunity Act.  In addition to allegations of redlining and discrimination resulting from discretionary underwriting and pricing, the agencies’ joint complaint filed in federal court… More >

CFPB issues 2015 fair lending report

Posted in Fair Lending

The CFPB has issued a report covering its fair lending activities during 2015.  The report states that in 2015, CFPB fair lending supervisory and public enforcement actions required institutions to provide approximately $108 million in remediation.  Much of the information contained in the report was the subject of previous blog posts. Like its 2014 fair… More >

FTC sends 2015 ECOA report to CFPB

Posted in Fair Lending, FTC

The FTC has sent its annual letter to the CFPB reporting on the FTC’s activities related to compliance with the Equal Credit Opportunity Act and Regulation B. The FTC has authority to enforce the ECOA and Reg B as to nonbank providers within its jurisdiction.  However, like last year’s letter on the FTC’s 2014 ECOA… More >

CFPB provides insight on treatment of big data

Posted in Fair Lending

This will follow up on Barbara Mishkin’s January 14, 2016 blog “FTC warns use of big data may violate federal consumer protection laws.”  At the American Bar Association’s Consumer Financial Services Committee meeting last month in Park City, Utah, Bryce Stephens and Jeffrey Langer from the CFPB provided insight as to how the CFPB treats the use… More >

FTC warns use of big data may violate federal consumer protection laws

Posted in Credit Reports, Fair Lending, FTC, UDAAP

A new FTC report, “Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues,” warns that certain uses of big data consisting of consumer information may implicate various federal consumer protection laws.  In the report, the FTC puts companies on notice that it intends “to monitor areas where big data practices could violate existing… More >

Ballard Spahr attorneys to conduct webinar sponsored by the American Banker and National Mortgage News on redlining fair lending claims

Posted in Fair Lending

In late September, the CFPB and DOJ announced a proposed consent order with Hudson City Savings Bank to settle allegations that the bank had engaged in a pattern or practice of redlining in its residential mortgage lending.  The settlement represents the largest federal court settlement for redlining in history as measured by loan subsidies provided… More >

CFPB releases HMDA Rule Compliance Guide

Posted in CFPB Rulemaking, Fair Lending, Mortgages, Uncategorized

The CFPB released the Home Mortgage Disclosure (Regulation C) Small Entity Compliance Guide  on December 1, 2015.  According to the CFPB, the purpose of the Compliance Guide is to provide an accessible summary of Regulation C, in light of the final rule amending the Home Mortgage Disclosure Act (HMDA) which we summarized here.  In addition,… More >

CFPB raising LGBT issues with supervised entities

Posted in Fair Lending

We recently blogged about remarks made by Patrice Ficklin, Director of the CFPB’s Office of Fair Lending, at the American Bar Association’s Consumer Financial Services Institute.  In her remarks, she stated that the CFPB is focusing on LGBT consumers and the challenges they face.  She suggested that the ECOA’s prohibition against discrimination on the basis… More >

Lawmaker seeks information on CFPB’s role in regulating online lending to small businesses

Posted in Fair Lending, Small Business

Congresswoman Nydia Velázquez, ranking Democratic member on the House Small Business Committee, has sent a letter to Director Cordray and Mary Jo White, SEC Chair, seeking information about the roles of the CFPB and SEC in regulating online lending to small businesses. In her letter, Ms. Velázquez raises concerns that “small business consumers and retail… More >

CFPB seeking Assistant Director to advise on small business lending data collection rules

Posted in Fair Lending

The CFPB’s Division of Research, Markets & Regulations recently posted a job opening for an individual to serve as the “Assistant Director for Small Business Lending Markets.”  According to the job posting, the Assistant Director “will lead an inter-disciplinary team in the Bureau’s research and development of a landmark collection of data about loans to… More >

Fair Lending Director Ficklin Discusses Small Business Lending, LGBT issues, LEP consumers and Inclusive Communities at ABA Institute

Posted in Fair Lending

Last Thursday, I had the pleasure of teaching a class on payments and banking products to new lawyers at the American Bar Association’s Consumer Financial Services Institute.  I arrived early for the class and got to hear a lunch address on fair lending by Patrice Ficklin, Director of the CFPB’s Office of Fair Lending.  In… More >

Director Cordray to testify tomorrow before House Committee on Financial Services

Posted in Arbitration, Auto Finance, CFPB General, Fair Lending, TILA / RESPA

On Tuesday, September 29, Director Cordray will testify once again before the House Committee on Financial Services at 10 am.   The Hearing is entitled “The Semi-Annual Report of the Bureau of Consumer Financial Protection”. While I’m not expecting Director Cordray ‘s prepared remarks to announce any new development, it seems likely that he’ll be… More >

CFPB and DOJ announce redlining settlement

Posted in CFPB Enforcement, Fair Lending, Mortgages

Consistent with recent indications from CFPB and Department of Justice officials that more redlining cases would soon be coming, the CFPB and DOJ have announced a proposed consent order with Hudson City Savings Bank to settle allegations that the bank had engaged in a pattern or practice of redlining predominantly Black and Hispanic neighborhoods in its… More >

84 House members urge expedited CFPB action on small business lending data collection rules

Posted in Fair Lending

84 House members recently wrote to the CFPB to urge it to expedite rulemaking to implement the small business lending data requirements of Dodd-Frank Section 1071.  Section 1071 amended the ECOA to require financial institutions to collect and maintain certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. … More >

U.S. Senators urge expedited CFPB action on small business lending data collection rules

Posted in Fair Lending

We recently blogged about an American Banker article written by officials of three community groups that urged President Obama to publicly denounce Director Cordray for failing to issue regulations implementing the small business lending data requirements of Dodd-Frank Section 1071.  Section 1071 amended the ECOA to require financial institutions to collect and maintain certain data in… More >

Community groups want CFPB action on small business lending data collection rules

Posted in Fair Lending

A recent American Banker article written by officials of three community groups urges President Obama to publicly denounce Director Cordray for failing to issue regulations implementing the small business lending data requirements of Dodd-Frank Section 1071. Section 1071 amended the ECOA to require financial institutions to collect and maintain certain data in connection with credit… More >

CFPB Issues Study on Credit Reports; Next Steps are Unknown

Posted in Credit Reports, Fair Lending, Research

The CFPB recently released a report that documents the results of a research project undertaken by the CFPB’s Office of Research to better understand the demographic characteristics of consumers without traditional credit reports or credit scores.  The Report concludes that the current credit reporting system is precluding certain populations from accessing credit and taking advantage… More >

CFPB issues 2014 fair lending report

Posted in Fair Lending

The CFPB has issued a fair lending report covering its fair lending activities during 2014.  The report states that in 2014, CFPB fair lending supervisory and public enforcement actions required institutions to provide approximately $224 million in remediation. The report begins with a discussion of factors the CFPB considers in its risk-based prioritization approach for determining… More >

FTC sends ECOA report to CFPB

Posted in Fair Lending

The FTC recently sent a letter to the CFPB reporting on the FTC’s 2014 activities related to compliance with the Equal Credit Opportunity Act and Regulation B. Although the FTC has authority to enforce the ECOA and Reg B as to nonbank providers within its jurisdiction, the letter does not include any specific 2014 FTC… More >