What does the CFPB Monitor?

We aim to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law.

What are the 3 main fair lending regulations?

The courts have recognized three methods of proof of lending discrimination under the ECOA and the FHAct: Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.

What are the fair lending laws?

Two different federal laws deal with discrimination in lending: the Fair Housing Act (FHAct) and the Equal Credit Opportunity Act (ECOA). These fair lending laws prohibit lenders from discriminating in credit transactions on the basis of race, color, national origin, religion, sex, and other specified grounds.

How do you monitor fair lending?

Internal Fair Lending Monitoring A strong internal fair lending monitoring system will help ensure that policies are met by your institution’s actual practice. Monitoring, or self-testing, may include regular data analysis, policy reviews, exception management reviews, internal risk assessments, and more.

Who does CFPB regulate?

For banks with more than $10 billion in assets, the CFPB is the primary regulator for consumer compliance. For banks with $10 billion or lessin assets, the rulemaking, supervisory, and enforcement authorities for consumer protection are divided between the CFPB and the prudential bank regulators.

Is the CFPB necessary?

Why the CFPB is important Banks and credit unions are overseen by a variety of federal agencies, including the FDIC, the NCUA and the Federal Reserve. From Wall Street to Main Street, the CFPB has an important role in keeping consumers like you safe from unfair practices in the financial industry.

What are two primary fair lending laws?

The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.

What are unfair lending practices?

Predatory lending is any lending practice that imposes unfair and abusive loan terms on borrowers, including high interest rates, high fees, and terms that strip the borrower of equity. Predatory lenders often use aggressive sales tactics and deception to get borrowers to take out loans they can’t afford.

What are the 3 types of lending discrimination?

There are three types of lending discrimination: overt, disparate treatment and disparate impact. Overt discrimination is usually obvious, such as when a lender won’t consider the income of a woman on maternity leave until she returns to work.

Who is responsible for fair lending compliance?

Enforcement / Liability The National Credit Union Administration has responsibility for enforcement at federal credit unions with less than $10 billion in assets. The Federal Trade Commission enforces Regulation B at state- chartered credit unions with less than $10 billion in assets.

What is a fair lending risk assessment?

Practically speaking, a fair lending risk assessment often consists of a review of the financial institution’s history, policies and procedures, written documentation, tracking tools, reports, training materials, and exam results; conversations and interviews with key employees; and often, fair lending data analysis.

Does CFPB regulate banks?

We supervise a range of companies to assess their compliance with federal consumer financial laws. We have supervisory authority over banks, thrifts, and credit unions with assets over $10 billion, as well as their affiliates.

How to comply with the fair lending laws?

These resources provide guidance on how to comply with fair lending laws. This guide is intended for use by a credit union’s board of directors and management, compliance officers, and others having responsibility for fair lending compliance as part of their duties.

What do you need to know about CFPB ECOA 4?

Examination Procedures Baseline Review CFPB April 2019 ECOA 4 Module 1: Fair Lending Supervisory History (may be completed during scoping) Describe the entity’s fair lending supervisory history. Include any history of fair lending violations, or any areas identified as fair lending risks in either the last fair lending examination

What kind of reviews does the CFPB do?

ECOA baseline reviews are one type of fair lending review conducted by the CFPB, in addition to ECOA targeted reviews and Home Mortgage Disclosure Act (HMDA) reviews.

What are the NCUA fair lending compliance requirements?

NCUA Fair Lending Compliance Program for Federal Credit Unions Frequently Asked Questions and Answers (July 2017) Regulatory Alert 17-RA-03: Submission of 2016 Home Mortgage Disclosure Act Data (February 2017) Regulatory Alert 17-RA-02: Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2017 (January 2017)