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CFPB seeks enhanced public data on auto lending
In a new blog post, the CFPB highlighted how the cost of automobiles has risen substantially since the beginning of the COVID-19 pandemic and that auto loans are on track to outpace student loans in the first half of 2023.
Recognizing the bureau doesn’t have the same type of granular data about the auto lending market as it does with mortgage or student loans, the CFPB is seeking input from the public. Submissions will be accepted until Dec. 19.
“The CFPB is seeking to build a new data set that will allow for a more robust understanding of market trends,” authors noted in the blog post. “This may include, for example, collecting retrospective data from a sample of lenders that represent a cross-section of the auto lending market.”
In addition, the bureau plans to convene industry stakeholders and other agencies to gather input on the current data landscape.
NAFCU’s recently released Annual Report on Credit Unions found that loan growth for credit unions surged in the second quarter of 2022 as a result of strong auto lending, but noted that will likely slow as a result of the rising interest rate environments. NAFCU’s Board of Directors also discussed the surge in auto lending with Federal Reserve Governor Michelle Bowman Tuesday.
As credit unions are among the leading lenders within the auto market, NAFCU encourages its members to submit comments to the bureau to ensure data collection reflects the totality of the auto loan industry.
Read the full blog. NAFCU will continue to monitor the CFPB’s further actions regarding the auto lending market.