The CFPB’s 2022 Honest Lending Annual Report back to Congress

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At present, the CFPB launched its Honest Lending Annual Report back to Congress , describing our truthful lending actions in enforcement and supervision; steering and rulemaking; interagency coordination; and outreach and schooling for calendar yr 2022.

In 2022, the CFPB’s truthful lending work centered on the customers and communities most affected by illegal discrimination. These efforts included working with our federal and state companions to handle redlining in addition to confronting deep-seated discrimination within the dwelling appraisal business. The CFPB additionally launched a number of experiences shining a lightweight on elements that will affect truthful entry to credit score, together with how medical debt impacts tens of hundreds of thousands of customers’ credit score profiles, how individuals in under-resourced rural areas battle to entry monetary providers, and the challenges confronted by justice-involved people and households.

We additionally issued a number of guidelines and steering paperwork reaffirming the significance and applicability of truthful lending protections for potential candidates, candidates for credit score, and current account holders. By our enforcement and examination exercise, interpretive guidelines and advisory opinions, circulars, and different instruments, we proceed to clarify that truthful lending have to be a prime precedence for all monetary establishments.

The Honest Lending Annual Report back to Congress fulfills the CFPB’s statutory duty to, amongst different issues, report yearly to Congress on public enforcement actions taken by different companies with administrative enforcement obligations below the Equal Credit score Alternative Act (ECOA), and assessments of the extent to which compliance with ECOA has been achieved. It additionally fulfills the statutory requirement that the CFPB, in session with HUD, report yearly on the utility of the House Mortgage Disclosure Act’s requirement that coated lenders itemize sure mortgage mortgage knowledge.

By 2023 and past, the CFPB will proceed to face up for these customers and small companies who’re the least resourced to struggle again towards exploitation.

As famous within the Way forward for Honest Lending part on the finish of the Report, we’re targeted particularly on the elevated use of superior and rising applied sciences in monetary providers. Shoppers and small companies aren’t well-resourced to struggle again towards—and should not even know they’re topic to—algorithmic bias, digital surveillance and knowledge harvesting, darkish patterns, and superior applied sciences which might be black bins. The CFPB has elevated its experience in knowledge science and analytics to make sure that we will determine truthful lending violations at every stage of the credit score lifecycle. And we are going to proceed to take a whole-of-government strategy to guard customers from dangerous makes use of of automated methods marketed as synthetic intelligence. Because the CFPB reiterated along side the discharge of our joint assertion with the Division of Justice, Federal Commerce Fee, and U.S. Equal Employment Alternative Fee, we are going to maintain collectors and repair suppliers accountable for absolutely complying with truthful lending and different federal shopper monetary legal guidelines, whatever the know-how they select to make use of.

The CFPB additionally continues to struggle towards bias in dwelling value determinations and redlining. Households and full communities are harmed by biased, inaccurate value determinations, in addition to geographic discrimination, or redlining. Whether or not it takes the type of excluding neighborhoods with sure demographics from mainstream credit score or focusing on them with predatory merchandise, the CFPB is combatting these illegal practices to realize meaningfully restorative outcomes for the affected customers and communities.

The CFPB stays dedicated to defending people, small companies, and communities from discrimination, holding institutional and particular person unhealthy actors accountable, and making certain strong and complete cures for violations of the legal guidelines below our jurisdiction. Within the years to come back, we stay up for advancing our work to make sure a good, equitable, and nondiscriminatory credit score market, with equal financial alternative for all customers and their communities.

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