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CFPB releases 2021 Fair Lending Annual Report
The CFPB released its 2021 Fair Lending Annual report to Congress on Monday, revealing that throughout the year, the bureau mainly focused its fair lending supervision efforts on mortgage origination and pricing, small business lending, student loan origination work, policies and procedures regarding geographic and other exclusions in underwriting, and the use of artificial intelligence and machine learning models.
Of note, the CFPB mentioned that they will be looking at digital redlining and algorithmic bias in the future.
“As more technology platforms, including Big Tech firms, influence the financial services marketplace, the CFPB will be working to identify emerging risks and to develop appropriate policy responses,” stated CFPB Director Rohit Chopra. “In addition to focusing on specific financial products and services, the CFPB will also be analyzing how unfair and discriminatory practices harm specific population segments.”
Chopra also mentioned that the bureau will continue to work with regulators and law enforcement agencies to ensure fair lending and equal opportunities.
Read the report. NAFCU will continue to work closely with Congressional leaders and the CFPB to ensure credit unions are informed and not faced with burdensome fair lending compliance regulations.