CFPB Increases its Focus on Fair Lending

As the Equal Credit Opportunity Act reached its 40th year, and as 2017 arrived as the New Year, the CFPB recently announced on its blog that it will increase its focus in areas that protect consumers from credit discrimination and that broaden access to credit. The CFPB stated that it will continue to identify new and emerging fair lending risks and monitor institutions for compliance. These areas include:

• Redlining. The CFPB will continue to evaluate whether lenders have intentionally avoided lending in minority neighborhoods.
• Mortgage and Student Loan Servicing. The CFPB will determine whether some borrowers who are behind on their mortgage or student loan payments may have more difficulty working out a new solution with the servicer because of their race or ethnicity.
• Small Business Lending. Congress expressed concern that women-owned and minority-owned businesses may experience discrimination when they apply for credit, and has required the CFPB to take steps to ensure their fair access to credit.