WASHINGTON (5/2/14)--High-risk areas have become the focus as the Consumer Financial Protection Bureau refines its fair lending examination and supervisory work, the agency said this week.
"For many consumers, access to responsible credit remains a challenge. Without fair and equal access to credit, some people may never reach their financial goals. Worse, some consumers may face discrimination in the process," CFPB Assistant Director for the Office of Fair Lending and Equal Opportunity Patrice Ficklin wrote.
He added, "We've created, refined, and implemented a process to focus our supervisory work on areas that present higher risk to consumers when it comes to fair lending."
Ficklin said the CFPB's supervisory work on behalf of consumers takes agency staff into institutions to analyze data and review policies and practices to determine compliance with the Equal Credit Opportunity Act and the Home Mortgage Disclosure Act.
The CFPB blog post highlighted recent agency actions against ECOA and HMDA violators, including:
- Actions taken against two mortgage lenders that had significant mortgage loan application data errors;
- Actions against a credit card company that unlawfully discriminated against car applicants;
- Actions against a mortgage lender that charged African-American and Hispanic borrowers higher rates than it charged white borrowers with similar creditworthiness; and
- Actions against an indirect auto lender that overcharged minority borrowers.
For more on CFPB enforcement, use the resource link.