Fair Lending Report of the Bureau of Consumer Financial Protection, April 2020
| Citation | 85 FR 27395 |
| Record Number | 2020-09890 |
| Published date | 08 May 2020 |
| Section | Notices |
| Court | Consumer Financial Protection Bureau |
Federal Register, Volume 85 Issue 90 (Friday, May 8, 2020)
[Federal Register Volume 85, Number 90 (Friday, May 8, 2020)]
[Notices]
[Pages 27395-27407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09890]
[[Page 27395]]
=======================================================================
-----------------------------------------------------------------------
BUREAU OF CONSUMER FINANCIAL PROTECTION
Fair Lending Report of the Bureau of Consumer Financial
Protection, April 2020
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Fair Lending Report of the Bureau of Consumer Financial
Protection.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
issuing its eighth Fair Lending Report of the Bureau of Consumer
Financial Protection (Fair Lending Report) to Congress. The Bureau is
committed to ensuring fair, equitable, and nondiscriminatory access to
credit for both individuals and communities. This report describes our
fair lending activities in innovation, outreach, prioritization,
guidance and rulemaking, supervision, and enforcement for calendar year
2019.
DATES: The Bureau released the April 2020 Fair Lending Report on its
website on April 30, 2020.
FOR FURTHER INFORMATION CONTACT: Bobby Conner, Senior Policy Counsel,
Fair Lending, at 1-855-411-2372. If you require this document in an
alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION:
1. Fair Lending Report of the Bureau of Consumer Financial Protection,
April 2020
Message From Kathleen L. Kraninger, Director
I am pleased to present this Fair Lending Annual Report to Congress
reflecting the Consumer Financial Protection Bureau's fair lending
efforts in 2019.
During the past year, we've worked hard to enhance our fair lending
efforts by leveraging the authorities provided by Congress and the
Bureau's resources to be more effective and comprehensively utilized.
From supervision and enforcement to rulemaking, guidance and education,
the Bureau is dedicated to using all the tools at its disposal to
achieve our mission: Fair, equitable, and nondiscriminatory access to
credit markets for consumers and their communities.
Through our supervision and enforcement work, we strive to foster a
culture of institutional compliance and prevention of consumer harm. As
part of these important efforts, the Bureau continues to vigorously
enforce fair lending laws, including the Equal Credit Opportunity Act
and the Home Mortgage Disclosure Act. Through our rulemaking and
guidance, we articulate to regulated entities clear rules of the road
that protect consumers while promoting competition, transparency, and
fair markets for financial products and services. Through our outreach,
we continue to educate and empower consumers to make informed decisions
that secure their financial well-being.
In addition, the Bureau continues to focus on consumer beneficial
innovation--one of my key priorities--including innovation that
provides fair, equitable, and non-discriminatory access to credit. In
2019, the Bureau issued three new policies to help promote innovation
and facilitate compliance: A revised No-Action Letter Policy, a revised
Trial Disclosure Program Policy, and the Compliance Assistance Sandbox
Policy. We encourage innovators to consider these tools to develop new
financial products and services to better serve consumers.
One particular fair lending issue ripe for innovative solutions is
making financial products and services more accessible to consumers who
are unbanked and underbanked, including those who are Limited English
Proficient (LEP). By working on these complex issues together, I am
confident that we can find ways to overcome obstacles and provide
greater access to credit markets, including to LEP consumers.
In 2019, we issued a Request for Information regarding ``Tech
Sprints.'' Tech Sprints gather regulators, technologists, financial
institutions, and subject matter experts from key stakeholders to
collaboratively develop innovative solutions to clearly identified
challenges. We are excited to explore the use of Tech Sprints to
encourage regulatory innovation and collaborate with stakeholders in
developing viable solutions to regulatory compliance challenges. I hope
to announce more about these efforts in the near future.
Finally, in light of recent events concerning the COVID-19
pandemic, I am mindful of the need for additional innovative solutions
that protect America's consumers.
I am proud of the work that is highlighted in this report and
grateful to the Bureau staff who have been instrumental in leading
these efforts. Going forward, we will continue to work on expanding
responsible access to credit and helping to ensure that all consumers
are protected from discrimination.
Sincerely,
Kathleen L. Kraninger
Message From Patrice Alexander Ficklin, Director, Office of Fair
Lending and Equal Opportunity
As we reflect on another year and look ahead to the next, the
Bureau continues to make progress in ensuring fair, equitable, and
nondiscriminatory access to credit for all consumers in America. To
that end, I am honored to share our achievements in this, our eighth
Fair Lending Report.
During the past year, the Office of Fair Lending and Equal
Opportunity (OFLEO) continued to coordinate the Bureau's fair lending
work both internally, and with other governmental agencies, civil
rights organizations, consumer groups, and industry to encourage
consumer-friendly innovation to expand access to credit, especially for
unbanked and underbanked consumers.
Through our work on innovation, we also aim to provide meaningful
guidance to institutions on fair lending compliance in the age of
innovation. In this vein, in 2019, along with four other financial
regulators, the Bureau issued a joint statement about the use of
alternative data in underwriting, seeking to expand fair, equitable,
and nondiscriminatory access to credit. The use of alternative data
such as cash-flow data may improve the speed and accuracy of credit
decisions and expand access to fair and affordable credit to consumers
who currently may not obtain credit in the mainstream credit system,
and the Bureau encourages responsible use of such data to expand access
to credit.
We are particularly excited by our role in launching the Bureau's
first Tech Sprints, which we hope will facilitate the use of innovative
technologies to address challenges experienced by consumers, industry
and regulators.
I look forward to continuing to work with all stakeholders in
protecting America's consumers and expanding access to credit. When
navigating complex fair lending issues, stakeholders should consider
OFLEO as a resource.
Sincerely,
Patrice Alexander Ficklin
1. Innovations in Access to Credit
1.1 Collaboration Between the Office of Fair Lending and Equal
Opportunity and the Office of Innovation
The Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act) established the Bureau's mission to include both fair
lending and
[[Page 27396]]
innovation components. Specifically, the Dodd-Frank Act makes clear
that ``[t]he Bureau is authorized to exercise its authorities under
[F]ederal consumer financial law for the purposes of ensuring that,
with respect to consumer financial products and services . . . (2)
consumers are protected from unfair, deceptive, or abusive acts and
practices and from discrimination . . . and (5) markets for consumer
financial products and services operate transparently and efficiently
to facilitate access and innovation.'' \1\
---------------------------------------------------------------------------
\1\ Dodd-Frank Act section 1021(b)(2), (5) (emphasis added).
---------------------------------------------------------------------------
The Bureau is also responsible for providing oversight and
enforcement of Federal fair lending laws intended to ensure ``fair,
equitable, and nondiscriminatory access to credit for both individuals
and communities.'' \2\ The Bureau's Office of Fair Lending and Equal
Opportunity (OFLEO) coordinates fair lending work both internally and
externally with Bureau stakeholders, including consumer advocates,
civil rights organizations, industry, academia, and other government
agencies. OFLEO also works closely with the Office of Innovation (OI)
to help encourage innovation in expanding responsible credit access,
including fair, equitable, and nondiscriminatory access to credit to
underserved populations.
---------------------------------------------------------------------------
\2\ Dodd-Frank Act sections 1002(13), 1013(c).
---------------------------------------------------------------------------
On September 10, 2019, the Bureau, through OI, issued three new
policies to promote innovation and facilitate compliance: A revised No-
Action Letter (NAL) Policy,\3\ a revised Trial Disclosure Program
Policy,\4\ and the Compliance Assistance Sandbox Policy.\5\ The Bureau
is accepting applications under these policies and, as of this report,
has granted two NALs and a NAL template under the revised 2019 NAL
Policy.\6\
---------------------------------------------------------------------------
\3\ Consumer Fin. Prot. Bureau, No-Action Letter Policy (Sept.
10, 2019), https://files.consumerfinance.gov/f/documents/cfpb_final-policy-on-no-action-letters.pdf; Policy on No-Action Letters, 84 FR
48229, 48229-48246 (Sept. 6, 2019).
\4\ Consumer Fin. Prot. Bureau, Policy to Encourage Trial
Disclosure Programs (Sept. 6, 2019), https://files.consumerfinance.gov/f/documents/cfpb_final-policy-to-encourage-tdp.pdf; Policy to Encourage Trial Disclosure Programs, 84
FR 48260, 48260-48272 (Sept. 13, 2019).
\5\ Consumer Fin. Prot. Bureau, Policy on the Compliance
Assistance Sandbox (Sept. 6, 2019), https://files.consumerfinance.gov/f/documents/cfpb_final-policy-on-cas.pdf;
Policy on the Compliance Assistance Sandbox, 84 FR 48246, 48246-
48260 (Sept. 13, 2019).
\6\ Consumer Fin. Prot. Bureau, Granted Applications, https://www.consumerfinance.gov/about-us/innovation/granted-applications/.
---------------------------------------------------------------------------
As part of its coordination function, OFLEO works with OI regarding
applications to the Bureau's innovation programs that involve fair
lending and access to credit issues.
Review of such applications generally includes consideration of the
potential fair lending risks associated with the proposed product or
service, as well as its potential for expanding access to credit for
underserved or underbanked populations. In addition, after an
application related to fair lending or access to credit has been
granted by the Bureau, the two offices continue to work together, for
example, in reviewing data submitted by the recipient relating to fair
lending and credit access issues.
The Bureau encourages consumer-beneficial innovations, including
those that can help serve populations currently underserved by the
mainstream credit system. Entities are strongly encouraged to contact
the Bureau before applying to any of the innovation programs.
1.2 No-Action Letter Issued to HUD Housing Counseling Agencies
In September 2019, the Bureau issued a NAL under the revised 2019
NAL policy in response to a request by the U.S. Department of Housing
and Urban Development (HUD) on behalf of more than 1,600 housing
counseling agencies (HCAs) that participate in HUD's housing counseling
program.\7\ The NAL was issued after HUD brought concerns to the Bureau
about HCAs and mortgage lenders not entering into agreements that would
fund counseling services due to uncertainty about the application of
the Real Estate Settlement Procedures Act.
---------------------------------------------------------------------------
\7\ Consumer Fin. Prot. Bureau, CFPB Issues Policies to
Facilitate Compliance and Promote Innovation (Sept. 10, 2019),
https://www.consumerfinance.gov/about-us/newsroom/bureau-issues-policies-facilitate-compliance-promote-innovation/.
---------------------------------------------------------------------------
The more than 1,600 HUD-certified HCAs serve more than one million
households annually. They offer pre-purchase homeownership counseling
to potential borrowers looking to purchase their first home, providing
important information on fair housing, fair lending, and access to
credit issues. With this information, potential borrowers may be better
able to make informed choices based on their financial circumstances to
achieve safe and sustainable homeownership. The NAL is intended to
facilitate HCAs entering into such agreements with lenders and will
enhance the ability of HCAs to obtain funding from additional sources.
At the same time, in response to HUD's application, the Bureau
issued a NAL Template for mortgage lenders under the NAL Policy,
providing a foundation for future NAL applications by mortgage lenders.
1.3 Joint Statement On the Use of Alternative Data in Credit
Underwriting
In December 2019, the Bureau, the Board of Governors of the Federal
Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC),
the Office of the Comptroller of the Currency (OCC), and the National
Credit Union Administration (NCUA) (collectively ``the agencies'')
issued a joint statement on the use of alternative data in underwriting
by banks, credit unions, and non-bank financial firms.\8\
---------------------------------------------------------------------------
\8\ Consumer Fin. Prot. Bureau, Federal Regulators Issue Joint
Statement on the Use of Alternative Data in Credit Underwriting
(Dec. 3, 2019), https://www.consumerfinance.gov/about-us/newsroom/federal-regulators-issue-joint-statement-use-alternative-data-credit-underwriting/.
---------------------------------------------------------------------------
The purpose of the statement was to provide guidance on the use of
alternative data in underwriting and, to the extent firms are using or
contemplating using alternative data, to encourage responsible use of
such data.
Alternative data includes information not typically found in
consumers' credit reports or customarily provided by consumers when
applying for credit. Alternative data can include cash-flow data
derived from consumers' bank account records.
The statement further explains that a well-designed compliance
management program provides for a thorough analysis of relevant
consumer protection laws and regulations to ensure firms understand the
opportunities, risks, and compliance requirements before using
alternative data. As reflected in the statement, the agencies recognize
that use of alternative data in a manner consistent with applicable
consumer protection laws may improve the speed and accuracy of credit
decisions and may help firms evaluate the creditworthiness of consumers
who currently may not obtain credit in the mainstream credit system.
Additionally, the agencies acknowledge that using alternative data may
enable consumers to obtain additional products and/or more favorable
pricing/terms based on enhanced assessments of repayment capacity.
1.4 Providing Adverse Action Notices When Using Artificial Intelligence
and Machine Learning Models
As part of our consumer protection mission, Congress tasked the
Bureau with ensuring that markets for consumer financial products and
services operate transparently and efficiently to facilitate access and
innovation. One area of innovation the Bureau is monitoring for
[[Page 27397]]
fair lending and access to credit issues is artificial intelligence
(AI), and more specifically, machine learning (ML), a subset of AI.
One important issue is how complex AI models address the adverse
action notice requirements in ECOA and the Fair Credit Reporting Act
(FCRA). ECOA requires creditors to provide consumers with the main
reasons for a denial of credit or other adverse action.\9\ FCRA also
includes adverse action notice requirements.\10\ These notice
provisions serve important anti-discrimination, educational, and
accuracy purposes. There may be questions about how institutions can
comply with these requirements if the reasons driving an AI decision
are based on complex interrelationships.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 1691(d)(2).
\10\ 15 U.S.C. 1681m (a).
---------------------------------------------------------------------------
The existing regulatory framework has built-in flexibility that can
be compatible with AI algorithms. For example, although a creditor must
provide the specific reasons for an adverse action, the Official
Interpretation to ECOA's implementing regulation, Regulation B,
provides that a creditor need not describe how or why a disclosed
factor adversely affected an application,\11\ or, for credit scoring
systems, how the factor relates to creditworthiness.\12\ Thus, the
Official Interpretation provides an example that a creditor may
disclose a reason for a denial, even if the relationship of that
disclosed factor to predicting creditworthiness may be unclear to the
applicant. This flexibility may be useful to creditors when issuing
adverse action notices based on AI models where the variables and key
reasons are known, but which may rely upon non-intuitive relationships.
---------------------------------------------------------------------------
\11\ 12 CFR pt. 1002, comment 9(b)(2)-3.
\12\ Id. at 9(b)(2)-4.
---------------------------------------------------------------------------
Another example of this flexibility is that neither ECOA nor
Regulation B mandate the use of any particular list of reasons. Indeed,
the regulation provides that creditors must accurately describe the
factors actually considered and scored by a creditor, even if those
reasons are not reflected on the current sample forms.\13\ This
latitude may be useful to creditors when providing reasons that reflect
alternative data sources and more complex models.
---------------------------------------------------------------------------
\13\ 12 CFR pt. 1002, comment 9(b)(2)-2 and app. C, ] 4.
---------------------------------------------------------------------------
Industry continues to develop tools to accurately explain complex
AI decisions, and the Bureau expects more methods will emerge. These
developments hold great promise to enhance the ``explainability'' of AI
and facilitate use of AI for credit underwriting compatible with
adverse action notice requirements.
Despite this flexibility, there may still be some regulatory
uncertainty about how certain aspects of the adverse action
requirements apply in the context of AI/ML. Entities are encouraged to
consider the Bureau's new innovation policies as a means to address
these potential compliance issues.
The Bureau welcomes continued dialogue with institutions and
organizations regarding innovative ways to fulfill adverse action
notice requirements when using AI.
1.5 Update on Upstart No-Action Letter
In 2017, the Bureau announced a NAL to Upstart Network, Inc.
(Upstart), a company that uses alternative data and machine learning in
making credit underwriting and pricing decisions.\14\ Upstart's
underwriting model uses traditional underwriting data and various
categories of alternative data, including information related to
borrowers' education and employment history. The NAL, approved under
the Bureau's 2016 NAL policy, references the application of ECOA and
Regulation B to Upstart's use of alternative data and ML for its
underwriting and pricing model. This NAL is specific to the facts and
circumstances of Upstart and does not serve as an endorsement of the
use of any particular variables or modeling techniques in credit
underwriting and pricing. In addition, the NAL does not serve as an
endorsement of Upstart or the products or services it offers.
---------------------------------------------------------------------------
\14\ Consumer Fin. Prot. Bureau, CFPB Announces First No-Action
Letter to Upstart Network (Sept. 14, 2017), https://www.consumerfinance.gov/about-us/newsroom/cfpb-announces-first-no-action-letter-upstart-network/.
---------------------------------------------------------------------------
As a condition for receiving the NAL, Upstart agreed to a model
risk management and compliance plan that requires it to analyze and
appropriately address risks to consumers, as well as assess the real-
world impact of alternative data and ML. Pursuant to the NAL, Upstart
provides the Bureau with information comparing outcomes from its
underwriting and pricing model (tested model) against outcomes from a
hypothetical model that uses traditional application and credit file
variables and does not employ ML (traditional model). Upstart
independently validated the traditional model through fair lending
testing to ensure that it did not violate antidiscrimination laws.
Since the issuance of the NAL, Upstart has worked to answer several
key questions, including:
Whether the tested model's use of alternative data and ML
expands access to credit, including lower-priced credit, overall and
for various applicant segments, compared to the traditional model.
Whether the tested model's underwriting or pricing
outcomes result in greater disparities than the traditional model with
respect to race, ethnicity, sex, or age, and if so, whether applicants
in different protected class groups with similar model-predicted
default risk actually default at the same rate.
Upstart agreed to allow the Bureau to share key highlights from
simulations and analyses that it conducted pursuant to its model risk
management and compliance plan; the simulations and analyses were not
separately replicated by the Bureau. The following results provided by
Upstart reflect the net effect of both the alternative data and the ML
methodology used in the lender's model as applied to the lender's
applicant pool. The Bureau shared this information in a blog post in
August 2019.\15\
---------------------------------------------------------------------------
\15\ Patrice Alexander Ficklin and Paul Watkins, Consumer Fin.
Prot. Bureau, An update on credit access and the Bureau's first No-
Action Letter (Aug. 6, 2019), https://www.consumerfinance.gov/about-us/blog/update-credit-access-and-no-action-letter/.
---------------------------------------------------------------------------
The results provided from the access-to-credit comparisons show
that the tested model approves 27% more applicants than the traditional
model, and yields 16% lower average APRs for approved loans.
This reported expansion of credit access reflected in the results
provided occurs across all tested race, ethnicity, and sex segments
resulting in the tested model increasing acceptance rates by 23-29% and
decreasing average APRs by 15-17%.
In many consumer segments, the results provided show that the
tested model significantly expands access to credit compared to the
traditional model. Under the tested model, the results provided reflect
that:
Near prime consumers with FICO scores from 620 to 660 were
approved approximately twice as frequently.
Applicants under 25 years of age are 32% more likely to be
approved.
Consumers with incomes under $50,000 are 13% more likely
to be approved.
With regard to fair lending testing, which compared the tested
model with the traditional model, the approval rate and APR analysis
results provided for minority, female, and 62 and older applicants
showed no disparities that require further fair lending analysis under
the compliance plan. The Bureau continues to monitor the Upstart NAL.
[[Page 27398]]
1.6 Tech Sprints Request for Information
In September 2019, the Bureau, through collaboration between OI,
the Office of Technology and Innovation, and OFLEO, issued a Request
for Information (RFI) seeking comments and information to identify
opportunities to utilize ``Tech Sprints'' to encourage regulatory
innovation.\16\
---------------------------------------------------------------------------
\16\ Consumer Fin. Prot. Bureau, Request for Information
Regarding Tech Sprints (Sept. 12, 2019), https://files.consumerfinance.gov/f/documents/cfpb_rfi_tech-sprints.pdf.
---------------------------------------------------------------------------
Used successfully by the Financial Conduct Authority in the United
Kingdom, Tech Sprints gather regulators, technologists, financial
institutions, and subject matter experts from key stakeholders for
several days to work together to develop innovative solutions to
clearly identified challenges. Small teams include participants from
both the regulator and a diversity of entities to ensure the inclusion
of regulatory, industry, and technology perspectives. The regulator
assigns a specific regulatory compliance or market problem to each team
and challenges the teams to solve or mitigate the problem using modern
technologies and approaches. The most promising ideas can then be
further developed either in collaboration with the regulator or by
external parties.
Specifically, the RFI stated that the Bureau is interested in using
Tech Sprints to:
Leverage cloud solutions, machine-automated compliance
checks that allow for independent validation by regulators, and other
developments that may reduce or modify the need for regulated entities
to transfer data to the Bureau.
Continue to innovate HMDA data submission, processing, and
publication to help ease burdens, increase flexibility, and resolve
compliance challenges, while satisfying all legal requirements.
Identify new technologies and approaches that can be used
by the Bureau to provide more cost-effective oversight of supervised
entities, effective evaluation of compliance and risk, and closer
interface with financial industry systems and technology that may
include the use, for example, of analytical tools in the review of
mortgage origination data.
Explore other technological approaches to robust and
secure data access or exchange between regulated entities and the
Bureau.
Reduce unwarranted regulatory compliance burdens.
In the RFI, the Bureau sought responses to questions, including:
What regulatory compliance issues, problems, procedures,
or requirements could benefit from innovation through a Bureau Tech
Sprint?
What financial technology or other advances hold the most
promise for helping modernize regulatory compliance?
Other than organizing Tech Sprints, what else might the
Bureau do to encourage innovation in financial products and services?
For example, could advances be encouraged by changes to certain Bureau
rules or policies?
The comment period closed on November 8, 2019, and the Bureau
received 19 comments in response to its RFI. The feedback identified an
interest in organizing Tech Sprints in the areas of HMDA, supervision
data sharing and submission, automated compliance, third-party
technology providers/bank-fintech partnerships, consumer disclosures,
and regulations.
The information provided will help the Bureau identify how
stakeholders can work together to create a regulatory environment (1)
that allows flexible, efficient, and effective innovation to flourish;
(2) where new and/or emerging risks can be identified and managed
effectively; and (3) where consumers have the appropriate level of
protection and suitable access to the benefits of technological
advancement. The information may also help identify responsible
innovations that can be implemented in a consumer-friendly way to help
serve populations currently underserved by the mainstream credit
system. The Bureau expects to announce its first Tech Sprints later in
2020.
2. Outreach: Promoting Fair Lending Compliance and Education
Pursuant to the Dodd-Frank Act, the Bureau regularly engages in
outreach with stakeholders, including civil rights organizations,
consumer advocates, industry, academia, and other government agencies,
to: (1) Educate them about fair lending compliance and access to credit
issues and (2) hear their views on the Bureau's work to inform its
policy decisions.\17\
---------------------------------------------------------------------------
\17\ Consumer Fin. Prot. Bureau, Fiscal Year 2020: Annual
performance plan and report, and budget overview, Performance goal
2.1.1, at 69 (Feb. 2020), https://files.consumerfinance.gov/f/documents/cfpb_performance-plan-and-report_fy20.pdf.
---------------------------------------------------------------------------
Throughout 2019, OFLEO worked closely with other Bureau offices to
execute the Bureau's fair lending outreach and education efforts.
The Bureau is committed to communicating directly with all
stakeholders on its policies, compliance expectations, and fair lending
priorities, and to receiving valuable input about fair lending issues
and how innovation can promote fair, equitable, and nondiscriminatory
access to credit.
2.1 Educating Stakeholders About Fair Lending Compliance and Access to
Credit Issues
2.1.1 Bureau Blog Posts, Statements, Reports, and Press Releases
The Bureau regularly uses blog posts, statements, reports, and
press releases as tools to timely and effectively communicate with
consumers and other stakeholders on issues, emerging areas of concern,
Bureau initiatives, and more. In 2019, the Bureau published three blog
posts related to fair lending including: an update on credit access and
the Bureau's No-Action Letter with Upstart,\18\ the 2019 report on the
Bureau's Building a Bridge to Credit Visibility symposium,\19\ and the
release of the 2018 Fair Lending Annual Report.\20\ The Bureau's blog
posts, including those related to fair lending, may be accessed at
www.consumerfinance.gov/blog.
---------------------------------------------------------------------------
\18\ Patrice Alexander Ficklin and Paul Watkins, Consumer Fin.
Prot. Bureau, An update on credit access and the Bureau's first No-
Action Letter (Aug. 6, 2019), https://www.consumerfinance.gov/about-us/blog/update-credit-access-and-no-action-letter/.
\19\ Patrice Alexander Ficklin and J. Frank Vespa-Papaleo,
Consumer Fin. Prot. Bureau, A report on the Bureau's Building a
Bridge to Credit Visibility Symposium (July 19, 2019), https://www.consumerfinance.gov/about-us/blog/report-credit-visibility-symposium/.
\20\ Patrice Alexander Ficklin, Encouraging innovation in
expanding credit access: 2018 Fair Lending Report to Congress,
Consumer Fin. Prot. Bureau (June 28, 2019), https://www.consumerfinance.gov/about-us/blog/2018-fair-lending-report-congress/.
---------------------------------------------------------------------------
The Bureau also issued two statements related to fair lending in
2019: a Statement on Collection of Demographic Information by Community
Development Financial Institutions,\21\ and a Joint Statement with
Federal Regulators on the Use of Alternative Data in Credit
Underwriting.\22\
---------------------------------------------------------------------------
\21\ Consumer Fin. Prot. Bureau, Statement on Collection of
Demographic Information by Community Development Financial
Institutions (June. 27, 2019), https://www.consumerfinance.gov/policy-compliance/guidance/supervisory-guidance/statement-collection-demographic-information-community-development-financial-institutions/.
\22\ Consumer Fin. Prot. Bureau, Federal Regulators Issue Joint
Statement on the Use of Alternative Data in Credit Underwriting
(Dec. 3, 2019), https://www.consumerfinance.gov/about-us/newsroom/federal-regulators-issue-joint-statement-use-alternative-data-credit-underwriting/.
---------------------------------------------------------------------------
In 2019, the Bureau also issued six press releases related to fair
lending
[[Page 27399]]
topics including: the Bureau's announcement regarding its symposia
series,\23\ the release of certain 2018 HMDA data,\24\ \25\ the
extension of the public comment period for the Advance Notice of
Proposed Rulemaking (ANPR) regarding HMDA data points,\26\ the issuance
of a final HMDA Rule,\27\ the issuance of the Interagency Statement on
the Use of Alternative Data in Credit Underwriting,\28\ and a public
enforcement action against Freedom Mortgage Corporation.\29\ The
Bureau's statements and press releases, including those related to fair
lending, may be accessed at www.consumerfinance.gov/about-us/newsroom.
---------------------------------------------------------------------------
\23\ Consumer Fin. Prot. Bureau Announces Symposia Series (Apr.
8, 2019), https://www.consumerfinance.gov/about-us/newsroom/bureau-announces-symposia-series/.
\24\ Consumer Fin. Prot. Bureau, FFIEC Announces Availability of
2018 Data on Mortgage Lending (Aug. 30, 2019), https://www.consumerfinance.gov/about-us/newsroom/ffiec-announces-availability-2018-data-mortgage-lending/.
\25\ Consumer Fin. Prot. Bureau, HMDA Modified Loan Application
Registers Released (Mar. 29, 2019), https://www.consumerfinance.gov/about-us/newsroom/hmda-modified-loan-application-registers-released/.
\26\ Consumer Fin. Prot. Bureau, CFPB Extends Comment Period for
ANPR on HMDA Data Points (Jun. 27, 2019), https://www.consumerfinance.gov/about-us/newsroom/bureau-extends-comment-period-anpr-hmda-data-points/.
\27\ Consumer Fin. Prot. Bureau, Consumer Financial Protection
Bureau Issues Final HMDA Rule to Provide Relief to Smaller
Institutions (Oct. 10, 2019), https://www.consumerfinance.gov/about-us/newsroom/bureau-issues-final-hmda-rule-provide-relief-smaller-institutions/.
\28\ Federal Regulators Issue Joint Statement on the Use of
Alternative Data in Credit Underwriting (Dec. 3, 2019), https://www.consumerfinance.gov/about-us/newsroom/federal-regulators-issue-joint-statement-use-alternative-data-credit-underwriting/.
\29\ Consumer Fin. Prot. Bureau, Consumer Financial Protection
Bureau Settles with Freedom Mortgage Corporation (Jun. 5, 2019),
https://www.consumerfinance.gov/about-us/newsroom/bureau-settles-freedom-mortgage-corporation/.
---------------------------------------------------------------------------
2.1.2 Bureau Outreach Engagements With Stakeholders
Bureau staff participated in 63 outreach engagements throughout
2019 to educate external stakeholders about fair lending compliance and
access to credit issues. In most of those engagements, Bureau personnel
also received information and feedback on the Bureau's policy
decisions.
Specifically, in 2019, the Bureau communicated directly with fair
lending, civil rights, consumer and community advocates, and with
industry through speeches, panel remarks, presentations, roundtables, a
webinar, an onsite HMDA Help Desk, and smaller meetings on issues
pertaining to fair, equitable, and nondiscriminatory access to credit.
The Bureau also engaged with stakeholders through the Bureau's website,
consumerfinance.gov. Some examples of the topics covered include: fair
lending supervision and enforcement priorities, innovations in lending,
HMDA and Regulation C, small business lending, the Bureau's Tech
Sprints RFI, access to credit for LEP consumers, providing adverse
action notices when using ML models, and the use of alternative data.
2.1.3 2019 HMDA Warning Letters
In 2019, the Bureau issued warning letters to mortgage-lending
institutions indicating that they may be required to collect, record,
and report data about their mortgage-lending activity under HMDA and
Regulation C, and that they may be in violation of those
requirements.\30\ The letters urged recipients to review their
practices to ensure their compliance with all relevant laws. The
recipients were encouraged to respond to the Bureau to advise if they
have taken, or will take, steps to ensure compliance with the law, or
to tell the Bureau if they if they think their activities do not
trigger HMDA reporting thresholds.
---------------------------------------------------------------------------
\30\ On October 27, 2016, the Bureau issued the first round of
HMDA warning letters, https://www.consumerfinance.gov/about-us/newsroom/cfpb-warns-financial-institutions-about-potential-mortgage-lending-reporting-failures/.
---------------------------------------------------------------------------
Through these letters the Bureau seeks to increase compliance with
HMDA through enhanced education efforts and direct outreach to
potentially non-compliant mortgage lenders, and to increase HMDA data
quality and completeness through accurate reporting. Since commencing
the issuance of the HMDA warning letters more than 140,000 new mortgage
loan application registers (LARs) that previously went unreported by
the entities have now been reported. The Bureau will follow up on these
letters to ensure compliance, as appropriate.
2.1.4 Supervisory Highlights
Supervisory Highlights has long been a report that anchors the
Bureau's efforts to communicate about the Bureau's supervisory
activity. In March 2019, the Winter 2019 Supervisory Highlights noted
the updates made to HMDA Small Entity Compliance Guide from October 30,
2018.\31\ At that time, the Bureau updated the HMDA Small Entity
Compliance Guide to reflect changes made to the HMDA by section 104(a)
of the Economic Growth, Regulatory Relief, and Consumer Protection Act
(EGRRCPA).
---------------------------------------------------------------------------
\31\ Consumer Fin. Prot. Bureau, Supervisory Highlights Winter
2019 at 19 (March 2019), https://files.consumerfinance.gov/f/documents/cfpb_supervisory-highlights_issue-18_032019.pdf.
---------------------------------------------------------------------------
All editions of Supervisory Highlights are available at
www.consumerfinance.gov/reports.
2.2 Listening to Stakeholders To Inform the Bureau's Policy Decisions
2.2.1 Bureau Outreach Engagements With Stakeholders
As described above in section 2.1.2, Bureau outreach engagements
serve as a vehicle to hear the views of external stakeholders in order
to inform the Bureau's policy decisions. In these events, Bureau staff
received feedback from stakeholders on issues pertaining to
discrimination and fair, equitable, and nondiscriminatory access to
credit.
2.2.2 Bureau Outreach Follow-Up From 2018 Building a Bridge Symposium
In follow-up to the Bureau's September 17, 2018 Building a Bridge
to Credit Visibility symposium, and to increase the Bureau's knowledge
base about innovations in small business lending, the Offices of Fair
Lending and Small Business Lending Markets held two Fair Lending
Roundtables with Minneapolis/St. Paul-area (Twin Cities) stakeholders
involved in small business lending. The event was held on May 8, 2019,
in Minneapolis, Minnesota. Participants at the Roundtables represented
both industry and consumer groups, including community banks, credit
unions, and Community Development Financial Institutions (CDFIs) that
provide small business credit in the Twin Cities area. Also in
attendance were representatives from the Minnesota Credit Union League
and Credit Union National Association.
Aside from collecting invaluable information that will inform the
Bureau's work and future policymaking, the event introduced the Bureau
to certain local organizations in the Twin Cities area that were
previously unaware of the Bureau's work and resources. The event also
served as a conduit for bringing together local organizations involved
in providing small business microlending in the Twin Cities area that
had not previously connected. The Bureau anticipates that these groups
will continue to benefit from working together to help small businesses
and their communities in the Twin Cities area.
2.2.3 Bureau Symposium on Section 1071
In April 2019, the Bureau announced a symposia series exploring
consumer protections in today's dynamic financial
[[Page 27400]]
services marketplace.\32\ The series is aimed at stimulating a
proactive and transparent dialogue to assist the Bureau in its policy
development process, including possible future rulemakings. During each
symposium, the Bureau hosts a discussion panel of experts with a
variety of viewpoints on the topic.
---------------------------------------------------------------------------
\32\ Consumer Fin. Prot. Bureau, Consumer Financial Protection
Bureau Announces Symposia Series (Apr. 8, 2019), https://www.consumerfinance.gov/about-us/newsroom/bureau-announces-symposia-series/.
---------------------------------------------------------------------------
On November 6, 2019, the Bureau held a symposium on section 1071 of
the Dodd-Frank Act.\33\ Section 1071 amended ECOA to require, subject
to rules prescribed by the Bureau, financial institutions to collect,
report, and make public certain information concerning credit
applications made by women-owned, minority-owned, and small businesses.
The symposium provided a public forum for the Bureau and the public to
hear various perspectives on the small business lending marketplace and
the Bureau's upcoming implementation of section 1071.
---------------------------------------------------------------------------
\33\ Consumer Fin. Prot. Bureau, CFPB Symposium: Section 1071 of
the Dodd-Frank Act (Nov. 6, 2019), https://www.consumerfinance.gov/about-us/events/archive-past-events/cfpb-symposium-section-1071-dodd-frank-act/.
---------------------------------------------------------------------------
The event featured remarks by Director Kraninger. The symposium
also consisted of two panels of experts. The first panel focused on the
current state of, and future outlook for, the small business lending
marketplace. The second panel included a discussion of the
implementation of section 1071. Additional information regarding this
symposium, including the agenda, the panelists' written statements, and
a video of the event is available on the Bureau's website.\34\
Information about the Bureau's efforts to implement section 1071 can be
found in section 4.2.2 of this Report.
---------------------------------------------------------------------------
\34\ Id.
---------------------------------------------------------------------------
3. Interagency Coordination and Engagement
Throughout 2019, the Bureau coordinated its fair lending
regulatory, supervisory, and enforcement activities with other Federal
agencies and State regulators to promote consistent, efficient, and
effective enforcement of Federal fair lending laws. This interagency
engagement sought to address current and emerging fair lending risks.
Interagency engagement occurs in numerous ways, including through
several interagency organizations.
The Federal Financial Institutions Examination Council (FFIEC) is
currently chaired by Director Kraninger.\35\ Through the FFIEC, the
Bureau has robust engagement with other partner agencies that focus on
fair lending issues.
---------------------------------------------------------------------------
\35\ Collectively, the FRB, FDIC, NCUA, OCC, and the Bureau
comprise the FFIEC. The FFIEC is a ``formal interagency body
empowered to prescribe uniform principles, standards, and report
forms for the [F]ederal examination of financial institutions'' by
the member agencies listed above and the State Liaison Committee
``and to make recommendations to promote uniformity in the
supervision of financial institutions.'' Fed. Fin. Inst. Examination
Council, http://www.ffiec.gov (last visited March 30, 2020). The
State Liaison Committee was added to FFIEC in 2006 as a voting
member.
---------------------------------------------------------------------------
For example, the Bureau currently chairs the FFIEC HMDA/Community
Reinvestment Act Data Collection Subcommittee of the FFIEC Task Force
on Consumer Compliance (Task Force). The Task Force oversees FFIEC
projects and programs involving HMDA data collection and dissemination,
the preparation of the annual FFIEC budget for processing services, and
the development and implementation of other related HMDA processing
projects as directed by the Task Force.
Additionally, the Bureau, the Federal Trade Commission (FTC), HUD,
FDIC, FRB, NCUA, OCC, DOJ, and the Federal Housing Finance Agency
(FHFA), comprise the Interagency Task Force on Fair Lending (Fair
Lending Task Force). Currently, the Bureau chairs the Fair Lending Task
Force, which meets regularly to discuss fair lending enforcement
efforts, share current methods of conducting supervisory and
enforcement fair lending activities, and coordinate fair lending
policies.
Further, the Bureau also participates in the Interagency Working
Group on Fair Lending Enforcement, a standing working group of Federal
agencies--DOJ, HUD, and FTC--that meets regularly to discuss issues
specifically relating to fair lending enforcement. The agencies use
these meetings to discuss fair lending developments and trends,
methodologies for evaluating fair lending risks and violations, and
coordination of fair lending enforcement efforts.
In addition to these established interagency working groups, Bureau
personnel meet periodically and on an ad hoc basis with DOJ, HUD, and
the prudential regulators to coordinate the Bureau's fair lending work.
4. Guidance and Rulemaking
4.1 HMDA and Regulation C Rulemaking and Guidance
4.1.1 Regulation C 2019 Notice of Proposed Rulemaking and Final Rule
In May 2019, the Bureau issued a Notice of Proposed Rulemaking
(NPRM) \36\ proposing two alternatives to amend Regulation C to
increase the threshold for reporting data about closed-end mortgage
loans. The proposed amendments would increase the threshold so that
institutions originating fewer than either 50 closed-end mortgage
loans, or alternatively, 100 closed-end mortgage loans, in either of
the two preceding calendar years would not have to report such data as
of January 1, 2020. The proposed rule also proposed to adjust the
threshold for reporting data about open-end lines of credit by
extending to January 1, 2022, the current temporary threshold of 500
open-end lines of credit and setting a threshold at 200 open-end lines
of credit upon the expiration of the proposed extension of the
temporary threshold.
---------------------------------------------------------------------------
\36\ Home Mortgage Disclosure (Regulation C), 84 FR 20972 (May
13, 2019).
---------------------------------------------------------------------------
In October 2019, the Bureau issued a Final Rule \37\ amending
Regulation C to adjust the threshold for reporting data about open-end
lines of credit by extending to January 1, 2022, the current temporary
threshold of 500 open-end lines of credit. The Final Rule announced
that any change to the closed-end mortgage loan reporting threshold and
permanent open-end threshold to take effect upon expiration of the
temporary threshold would be addressed in a later rule.
---------------------------------------------------------------------------
\37\ Home Mortgage Disclosure (Regulation C), 84 FR 57946 (Oct.
29, 2019).
---------------------------------------------------------------------------
The Final Rule also further implements the partial exemptions from
HMDA's requirements that EGRRCPA recently added to HMDA. In August
2018, the Bureau issued an interpretive and procedural rule to
implement and clarify the EGRRCPA amendments to HMDA (2018 HMDA
Rule).\38\ The 2018 HMDA Rule clarifies that insured depository
institutions and insured credit unions covered by a partial exemption
have the option of reporting exempt data fields as long as they report
all data fields within any exempt data point for which they report
data; clarifies that only loans and lines of credit that are otherwise
HMDA reportable count toward the thresholds for the partial exemptions;
clarifies which of the data points in Regulation C are covered by the
partial exemptions; designates a non-universal loan identifier for
partially exempt transactions for institutions that choose not to
report a universal loan identifier; and clarifies the exception to the
partial exemptions for insured depository
[[Page 27401]]
institutions with less than satisfactory examination histories under
the Community Reinvestment Act of 1977. This final rule incorporates
into Regulation C these interpretations and procedures, with minor
adjustments, by adding new Sec. [thinsp]1003.3(d) relating to the
partial exemptions and making various amendments to the data
compilation requirements in Sec. [thinsp]1003.4. The Final Rule
further implements EGRRCPA by addressing certain additional
interpretive issues relating to the partial exemptions that the 2018
HMDA Rule did not specifically address, such as how to determine
whether a partial exemption applies to a transaction after a merger or
acquisition. The provisions in the final rule implementing the EGRRCPA
took effect on January 1, 2020.
---------------------------------------------------------------------------
\38\ Partial Exemptions from the Requirements of the Home
Mortgage Disclosure Act Under the Economic Growth, Regulatory
Relief, and Consumer Protection Act (Regulation C), 83 FR 45325
(Sept. 7, 2018).
---------------------------------------------------------------------------
4.1.2 Regulation C Data Points and Coverage 2019 Advance Notice of
Proposed Rulemaking
In May 2019, the Bureau issued an ANPR relating to the data points
that the Bureau's 2015 HMDA Rule added to Regulation C or revised to
require additional information.\39\ Additionally, the ANPR relates to
the requirement that institutions report certain business- or
commercial-purpose transactions under Regulation C. The Bureau
currently is reviewing the comments received and expects to issue a
Notice of Proposed Rulemaking (NPRM) later in 2020.
---------------------------------------------------------------------------
\39\ Home Mortgage Disclosure (Regulation C), 84 FR 20049 (May
8, 2019).
---------------------------------------------------------------------------
4.1.3 HMDA Public Data Disclosure Guidance
The Bureau has decided to commence a new notice-and-comment
rulemaking to govern HMDA data disclosure. In its 2015 final rule to
implement the Dodd-Frank Act amendments to HMDA, the Bureau adopted a
balancing test to determine whether and how HMDA data should be
modified prior to its disclosure to the public in order to protect
applicant and borrower privacy while also fulfilling HMDA's public
disclosure purposes.\40\ The Bureau sought comment in 2017 on its
proposed application of the balancing test to the 2018 data,\41\ and
issued final policy guidance in late 2018.\42\
---------------------------------------------------------------------------
\40\ 80 FR 66128, 66134 (Oct. 28, 2015).
\41\ Disclosure of Loan-Level HMDA Data, 82 FR 44586 (Sept. 25,
2017).
\42\ 84 FR 649 (Jan. 31, 2019).
---------------------------------------------------------------------------
In consideration of stakeholder comments urging that determinations
concerning the disclosure of loan-level HMDA data be effectuated
through more formal processes, the Bureau has decided to commence a new
notice-and-comment rulemaking to govern HMDA data disclosure. The
Bureau expects to issue a NPRM later in 2020. The Bureau plans to
consider the HMDA data points and public disclosure proposed rules
concurrently.
4.1.4 2018 HMDA Data Release
In August 2019, on behalf of the FFIEC, the Bureau released data on
mortgage lending transactions at U.S. financial institutions covered by
HMDA.\43\ Covered institutions include banks, savings associations,
credit unions, and mortgage companies. The HMDA data covers 2018
lending activity. Many of the data points were available for the first
time in the 2018 HMDA data. Certain smaller-volume financial
institutions are not required to report all these data, pursuant to the
EGRRCPA, as described above in section 4.1.1
---------------------------------------------------------------------------
\43\ Consumer Fin. Prot. Bureau, FFIEC Announces Availability of
2018 Data on Mortgage Lending (Aug. 30, 2019), https://www.consumerfinance.gov/about-us/newsroom/ffiec-announces-availability-2018-data-mortgage-lending/.
---------------------------------------------------------------------------
With the data, the Bureau released two Data Point articles. The
first describes the historical data points in the 2018 HMDA data, as
well as recent trends in mortgage and housing markets.\44\
---------------------------------------------------------------------------
\44\ Consumer Fin. Prot. Bureau, Data point: 2018 mortgage
market activity and trends, (Aug. 30, 2019), https://www.consumerfinance.gov/data-research/research-reports/data-point-2018-mortgage-market-activity-and-trends/.
---------------------------------------------------------------------------
The second introduces the new and revised data points in the 2018
HMDA data and provides some initial observations about the nation's
mortgage market in 2018 based on those new or revised data points.\45\
---------------------------------------------------------------------------
\45\ Consumer Fin. Prot. Bureau, Data Point: Introducing New and
Revised Data Points in HMDA (Aug. 30, 2019), https://www.consumerfinance.gov/data-research/research-reports/introducing-new-revised-data-points-hmda/.
---------------------------------------------------------------------------
Earlier, in March 2019, Modified LARs data were published for
approximately 5,400 financial institutions.\46\ The Modified LARs
contain loan-level information for 2018 on individual HMDA filers,
modified to protect privacy.
---------------------------------------------------------------------------
\46\ Consumer Fin. Prot. Bureau, HMDA Modified Loan Application
Registers Released (Mar. 29, 2019), https://www.consumerfinance.gov/about-us/newsroom/hmda-modified-loan-application-registers-released/.
---------------------------------------------------------------------------
4.1.5 HMDA Guidance and Resources
The Bureau created many resources to help facilitate compliance
with Regulation C, including an Executive Summary of HMDA rule changes;
Small Entity Compliance Guide; Key Dates Timeline, Institutional and
Transactional Coverage Charts; Reportable HMDA Data Chart; sample data
collection form, and Frequently Asked Questions (FAQs), in addition to
downloadable Webinars that provide an overview of the HMDA rule. The
Bureau also provides on its website an Interactive Bureau Regulations
version of Regulation C.
HMDA resources are routinely updated throughout the year to ensure
HMDA reporters have the most up-to-date information. For example, in
September 2019, the Bureau released the 2020 Filing Instructions Guide
(FIG) and the Supplemental Guide for Quarterly Filers. Together with
the FFIEC, in March 2019, the Bureau also published the 2019 edition of
the HMDA Getting it Right Guide. The Bureau also worked with the FFIEC
to publish data submission resources for HMDA filers and vendors on its
Resources for HMDA Filers website.
4.2 ECOA and Regulation B Rulemaking and Guidance
4.2.1 Statement on Collection of Demographic Information by Community
Development Financial Institutions
In July 2019, the Bureau issued a statement regarding the
collection of demographic information by financial institutions that
are Community Development Financial Institutions (CDFIs) receiving
assistance from the U.S. Department of the Treasury's Community
Development Financial Institutions Fund (CDFI Fund).\47\
---------------------------------------------------------------------------
\47\ Consumer Fin. Prot. Bureau, Statement on Collection of
Demographic Information by Community Development Financial
Institutions (July 29, 2019), https://www.consumerfinance.gov/policy-compliance/guidance/supervisory-guidance/statement-collection-demographic-information-community-development-financial-institutions/.
---------------------------------------------------------------------------
The Bureau became aware that some financial institutions that are
certified CDFIs receiving assistance from the CDFI Fund have inquired
whether they are subject to ECOA and Regulation B's general prohibition
on a creditor collecting certain information about an applicant for
credit, such as the applicant's race or ethnicity.
The statement explains that CDFIs receiving Federal financial
assistance from the CDFI Fund may collect demographic information on
the individuals the CDFI serves, consistent with the ECOA and its
implementing Regulation B, provided the collection of the information
is for the purpose of complying with the regulatory requirements of the
CDFI Fund.
4.2.2 Small Business Data Collection
As described earlier in this report, section 1071 of the Dodd-Frank
Act amends ECOA to require, subject to
[[Page 27402]]
rules prescribed by the Bureau, financial institutions to collect,
report, and make public certain information concerning credit
applications made by women-owned, minority-owned, and small businesses.
The amendments to ECOA made by the Dodd-Frank Act require that specific
data be collected, maintained, and reported, including but not limited
to: the type of loan applied for, the amount of credit applied for, the
type of action taken with regard to each application, the census tract
of the principal place of business of the loan applicant, and the race,
sex, and ethnicity of the principal owners of the business. The Dodd-
Frank Act also provides authority for the Bureau to require any
additional data that the Bureau determines would aid in fulfilling the
purposes of section 1071. The Bureau may adopt exceptions to any
requirement of section 1071 and may exempt any financial institution
from its requirements, as the Bureau deems necessary or appropriate to
carry out section 1071's purposes.
The Bureau issued an RFI in 2017 seeking public comment on, among
other things, the types of credit products offered, and the types of
data currently collected by lenders in this market, and the potential
complexity, cost of, and privacy issues related to, small business data
collection.
In connection with its Spring 2019 rulemaking agenda,\48\ the
Bureau announced its intention to recommence work to develop rules to
implement section 1071 of the Dodd-Frank Act.
---------------------------------------------------------------------------
\48\ Consumer Fin. Prot. Bureau, Regulatory Agenda, https://www.consumerfinance.gov/policy-compliance/rulemaking/regulatory-agenda/ (Last visited Apr. 29, 2020).
---------------------------------------------------------------------------
In November 2019, the Bureau hosted a symposium on small business
data collection. The information received in response to the 2017 RFI
and the symposium will help the Bureau determine how to implement the
statute efficiently while minimizing burdens on lenders.
In addition, the Bureau is working to conduct a survey of lenders
to obtain estimates of one-time costs lenders of varying sizes would
incur to collect and report data pursuant to section 1071. The Bureau
anticipates that its next step will be the release of materials in
advance of convening a panel under the Small Business Regulatory
Enforcement Fairness Act (SBREFA), in conjunction with the Office of
Management and Budget and the Small Business Administration's Chief
Counsel for Advocacy, to consult with representatives of small
businesses that may be affected by the rulemaking.\49\
---------------------------------------------------------------------------
\49\ Id.
---------------------------------------------------------------------------
Also, during 2019, the Bureau was involved in litigation regarding
the implementation of section 1071 of the Dodd-Frank Act. Information
concerning the litigation can be found in section 5 of this Report.
5. Amicus Program and Other Litigation
The Bureau files amicus curiae, or ``friend-of-the-court,'' briefs
in significant court cases concerning Federal consumer financial
protection laws, including ECOA. These amicus briefs provide the courts
with the Bureau's views on significant consumer financial protection
issues. Information regarding the Bureau's amicus program, including a
description of the amicus briefs it previously filed, is available on
the Bureau's website.\50\
---------------------------------------------------------------------------
\50\ https://www.consumerfinance.gov/policy-compliance/amicus/.
---------------------------------------------------------------------------
During 2019, the Bureau was involved in litigation regarding
section 1071 of the Dodd-Frank Act. On May 14, 2019, the California
Reinvestment Coalition filed a lawsuit in the U.S. District Court for
the Northern District of California against the Bureau seeking an order
compelling the Bureau to issue rules implementing section 1071 of the
Dodd-Frank Act. On June 27, 2019, an amended complaint was filed adding
the National Association for Latino Community Asset Builders and two
individuals as plaintiffs in the lawsuit. The Bureau answered and the
parties filed cross-motions for summary judgment. Information about the
Bureau's efforts to implement section 1071 can be found in section
4.2.2 of this Report.
6. Fair Lending Supervision And Enforcement
6.1 Risk-Based Prioritization
Because Congress charged the Bureau with responsibility for
overseeing many lenders and products, the Bureau has long-used a risk-
based approach to prioritize supervisory examinations and enforcement
activity. This approach helps ensure that the Bureau focuses on areas
that present substantial risk of credit discrimination for
consumers.\51\ This same approach continued in 2019.
---------------------------------------------------------------------------
\51\ For additional information regarding the Bureau's risk-
based approach in prioritizing supervisory examinations, see section
3.2.3, Risk-Based Approach to Examinations, Supervisory Highlights
Summer 2013, http://files.consumerfinance.gov/f/201308_cfpb_supervisory-highlights_august.pdf.
---------------------------------------------------------------------------
As part of the prioritization process, the Bureau identifies
emerging developments and trends by monitoring key consumer financial
markets. If this market intelligence identifies fair lending risks in a
particular market that require further attention, that information is
incorporated into the prioritization process to determine the type and
extent of attention required to address those risks.
The prioritization process incorporates a number of additional
factors, including: Tips and leads from industry whistleblowers,
advocacy groups, and government agencies; supervisory and enforcement
history; consumer complaints; and results from analysis of HMDA and
other publicly available data.
6.1.1 Fair Lending Supervisory and Enforcement Priorities
Through its annual risk-based prioritization process for 2019, the
Bureau focused its fair lending supervision efforts on mortgage
origination, small business lending, student loan origination, and debt
collection and model use.
As in previous years, the Bureau's mortgage origination work
continued to focus on: (1) Redlining and whether lenders intentionally
discouraged prospective applicants living or seeking credit in minority
neighborhoods from applying for credit; (2) assessing whether there is
discrimination in underwriting and pricing processes including
steering; and (3) HMDA data integrity and validation (which supports
ECOA exams) as well as HMDA diagnostic work (monitoring and assessing
new rule compliance).
The Bureau's small business lending work focused on assessing
whether (1) there is discrimination in the application, underwriting,
and pricing processes, (2) creditors are redlining, and (3) there are
weaknesses in fair lending related compliance management systems (CMS).
The Bureau's student loan origination work focused on whether there
is discrimination in policies and practices governing underwriting and
pricing. In the area of debt collection and model use, the Bureau's
work focused on whether there is discrimination in policies and
practices governing auto servicing and credit card collections,
including the use of models that predict recovery outcomes.
The Bureau also continued to enforce Federal fair lending laws,
including ECOA and HMDA. One key area on which the Bureau focused its
fair lending enforcement efforts was addressing potential
discrimination in mortgage lending, including the unlawful practice of
redlining.
6.2 Fair Lending Supervision
In 2019, the Bureau initiated 26 supervisory events at financial
services
[[Page 27403]]
institutions under the Bureau's jurisdiction to determine compliance
with Federal laws intended to ensure the fair, equitable, and
nondiscriminatory access to credit for both individuals and
communities, including ECOA and HMDA.
Consistent with BCFP Bulletin 2018-01,\52\ the Bureau issues
Matters Requiring Attention (MRAs) to correct violations of Federal
consumer financial law, remediate harmed consumers, and address
weaknesses in CMS that examiners found are directly related to
violations of Federal consumer financial law. MRAs include timeframes
for periodic reporting of efforts taken to address these matters, as
well as expected timeframes for implementation. The Bureau also uses
Supervisory Recommendations (SRs) to address the Bureau's supervisory
concerns related to financial institutions' CMS. SRs do not include
provisions for periodic reporting nor expected timelines for
implementation. In 2019, the Bureau provided MRAs directing entities to
take corrective actions that will be monitored by the Bureau through
follow-up supervisory events. The Bureau also issued SRs in 2019
relating to supervisory concerns related to weak fair lending CMS,
including weak policies and procedures, risk assessments, fair lending
testing, and/or fair lending training.
---------------------------------------------------------------------------
\52\ Consumer Fin. Prot. Bureau, BCFP Bulletin 2018-01: Changes
to Types of Supervisory Communications (Sept. 25, 2018), https://files.consumerfinance.gov/f/documents/bcfp_bulletin-2018-01_changes-to-supervisory-communications.pdf.
---------------------------------------------------------------------------
6.3 Fair Lending Supervisory Developments
6.3.1 Updated ECOA Baseline Review Modules and HMDA Examination
Procedures
In April 2019, the Bureau updated its ECOA Baseline Review Modules
\53\ and its HMDA Examination Procedures.\54\
---------------------------------------------------------------------------
\53\ Consumer Fin. Prot. Bureau, ECOA Baseline Review Procedures
(Apr. 1, 2019), https://www.consumerfinance.gov/policy-compliance/guidance/supervision-examinations/equal-credit-opportunity-act-ecoa-baseline-review-procedures/.
\54\ Consumer Fin. Prot. Bureau, HMDA Examination Procedures
(Apr. 1, 2019), https://www.consumerfinance.gov/policy-compliance/guidance/supervision-examinations/home-mortgage-disclosure-act-hmda-examination-procedures/.
---------------------------------------------------------------------------
The ECOA Baseline Review Modules consist of five modules that CFPB
examination teams use to conduct ECOA Baseline Reviews to evaluate how
institutions' CMS identify and manage fair lending risks under ECOA. In
addition, examination teams use Module 2: Fair Lending CMS to review a
supervised entity's fair lending CMS as part of an ECOA Targeted
Review, supplemented with additional modules from these procedures as
necessary.
A HMDA review includes transactional testing for HMDA data accuracy
conducted using the HMDA Examination Procedures within the CFPB
Supervision and Examination Manual. The updated HMDA Examination
Procedures include updates to reflect the Bureau's interpretive and
procedural rule, issued in August 2018, which implements and clarifies
section 104 of EGRRCPA.
6.4 Fair Lending Enforcement
The Bureau has the statutory authority to bring actions to enforce
the requirements of HMDA and ECOA. In this regard, the Bureau has the
authority to engage in research, conduct investigations, file
administrative complaints, hold hearings, and adjudicate claims through
the Bureau's administrative enforcement process. The Bureau also has
independent litigating authority and can file cases in Federal court
alleging violations of fair lending laws under the Bureau's
jurisdiction. Like other Federal bank regulators, the Bureau is
required to refer matters to DOJ when it has reason to believe that a
creditor has engaged in a pattern or practice of lending
discrimination.\55\
---------------------------------------------------------------------------
\55\ 15 U.S.C. 1691e(h).
---------------------------------------------------------------------------
6.4.1 Public Enforcement Actions
In 2019, the Bureau filed one fair lending public enforcement
action: In the Matter of Freedom Mortgage Corporation (File No. 2019-
BCFP-0007). The Bureau announced the settlement with Freedom Mortgage
Corporation (Freedom) on June 5, 2019.\56\ Freedom is a mortgage lender
with its principal place of business in Mount Laurel, New Jersey, and
one of the ten largest HMDA reporters nationwide. For each year from
2013 through 2016, it originated more than 50,000 home-purchase loans,
including refinancings of home-purchase loans. Freedom is required to
collect, record, and report data on HMDA-covered transactions to comply
with HMDA and Regulation C.
---------------------------------------------------------------------------
\56\ Consumer Fin. Prot. Bureau, Consumer Financial Protection
Bureau Settles with Freedom Mortgage Corporation (Jun, 5, 2019),
https://www.consumerfinance.gov/about-us/newsroom/bureau-settles-freedom-mortgage-corporation/.
---------------------------------------------------------------------------
According to the consent order, the Bureau found that Freedom
violated HMDA and Regulation C by submitting mortgage-loan data for
2014 to 2017 that contained numerous and intentional errors. The Bureau
found that Freedom reported inaccurate race, ethnicity, and sex
information and that much of Freedom's loan officers' recording of this
incorrect information was intentional. For example, certain loan
officers were told by managers or other loan officers that, when
applicants did not provide their race or ethnicity, they should select
non-Hispanic white regardless of whether that was accurate.
Under the terms of the consent order, Freedom must pay a civil
money penalty of $1.75 million and take steps to improve its compliance
management to prevent future violations.
6.4.2 ECOA Referrals to the Department of Justice
The Bureau must refer to the DOJ a matter when it has reason to
believe that a creditor has engaged in a pattern or practice of lending
discrimination in violation of ECOA.\57\ The Bureau also may refer
other potential ECOA violations to the DOJ.\58\ In 2019, the Bureau
referred three matters to the DOJ involving discrimination pursuant to
section 706(g) of ECOA. The first referral involved discrimination
based on a pattern or practice of redlining in mortgage origination
based on race. The second referral resulted from discrimination based
on receipt of public assistance income in mortgage origination. Lastly,
the third referral involved discrimination based on race and national
origin in auto origination.
---------------------------------------------------------------------------
\57\ 15 U.S.C. 1691e(g).
\58\ Id.
---------------------------------------------------------------------------
6.4.3 Implementing Enforcement Orders
When an enforcement action is resolved through a public enforcement
order, the Bureau (together with DOJ, when relevant) takes steps to
ensure that the respondent or defendant complies with the requirements
of the order. Depending on the specific requirements of individual
public enforcement orders, the Bureau may take steps to ensure that
borrowers who are eligible for compensation receive remuneration and
that the defendant has complied with the injunctive provisions of the
order, including implementing a comprehensive fair lending compliance
management system. Throughout 2019, the Bureau continued to implement
and oversee compliance with the two public enforcement orders described
below.
On June 29, 2016, the Bureau and the DOJ announced a joint action
against BancorpSouth Bank (BancorpSouth) for discriminatory mortgage
lending practices that harmed African Americans. The consent order,
which was entered by the Court on July 25,
[[Page 27404]]
2016, required BancorpSouth to pay $4 million in direct loan subsidies
in minority neighborhoods in Memphis; \59\ at least $800,000 for
community programs, advertising, outreach, and credit repair; $2.78
million to African American consumers who were unlawfully denied or
overcharged for loans; and a $3 million penalty.\60\ On June 25, 2018,
the Bureau announced that participation materials were mailed to
potentially eligible African American borrowers identified as harmed by
BancorpSouth's alleged discrimination in mortgage lending between 2011
and 2015, notifying them how to receive redress. Starting on March 15,
2019, checks were mailed to African American borrowers who were
confirmed as eligible to receive a payment.
---------------------------------------------------------------------------
\59\ ``Majority-minority neighborhoods'' or ``minority
neighborhoods'' refers to census tracts with a minority population
greater than 50 percent.
\60\ Consent Order, United States v. BancorpSouth Bank, No.
1:16-cv-00118-GHD-DAS (N.D. Miss. July 25, 2016), ECF No. 8, https://files.consumerfinance.gov/f/documents/201606_cfpb_bancorpSouth-consent-order.pdf.
---------------------------------------------------------------------------
On February 2, 2016, working with the DOJ, the Bureau ordered
Toyota Motor Credit Corporation (Toyota Motor Credit) to pay up to
$21.9 million in damages to harmed African American and Asian and/or
Pacific Islander borrowers for unlawful discrimination.\61\ On December
29, 2017, participation materials were mailed to potentially eligible
borrowers whom Toyota Motor Credit overcharged for their auto loans
notifying them how to participate in the settlement fund. On February
1, 2019, checks were mailed to eligible, participating consumers.
---------------------------------------------------------------------------
\61\ Consent Order In re Toyota Motor Credit Corporation, CFPB
No. 2016-CFPB-0002 (Feb. 2, 2016), https://files.consumerfinance.gov/f/201602_cfpb_consent-order-toyota-motor-credit-corporation.pdf.
---------------------------------------------------------------------------
6.4.4 Pending Fair Lending Investigations
In 2019, the Bureau had a number of ongoing and newly opened fair
lending investigations of institutions. One of the Bureau's key areas
of focus was potential discrimination in mortgage lending, including
the unlawful practice of redlining.
7. Interagency Reporting on ECOA and HMDA
The Bureau is statutorily required to file a report to Congress
annually describing the administration of its functions under ECOA,
summarizing public enforcement actions taken by other agencies with
administrative enforcement responsibilities under ECOA, and providing
an assessment of the extent to which compliance with ECOA has been
achieved.\62\ In addition, the Bureau's annual HMDA reporting
requirement calls for the Bureau, in consultation with HUD, to report
annually on the utility of HMDA's requirement that covered lenders
itemize certain mortgage loan data.\63\
---------------------------------------------------------------------------
\62\ 15 U.S.C. 1691f.
\63\ 12 U.S.C. 2807.
---------------------------------------------------------------------------
7.1 Reporting on ECOA Enforcement
The enforcement efforts and compliance assessments made by all the
agencies assigned enforcement authority under section 704 of ECOA are
discussed in this section.
BILLING CODE 4810-AM-P
[[Page 27405]]
[GRAPHIC] [TIFF OMITTED] TN08MY20.018
BILLING CODE 4810-AM-C
7.1.1 Public Enforcement Actions
The eleven agencies charged with administrative enforcement of ECOA
under section 704 are as follows:
---------------------------------------------------------------------------
\64\ 15 U.S.C. 1691c.
---------------------------------------------------------------------------
CFPB;
FDIC;
FRB;
NCUA;
OCC; \65\
---------------------------------------------------------------------------
\65\ Collectively, the Board of Governors of the Federal Reserve
System (FRB), the Federal Deposit Insurance Corporation (FDIC), the
National Credit Union Administration (NCUA), the Office of the
Comptroller of the Currency (OCC), and the Bureau of Consumer
Financial Protection (Bureau) comprise the Federal Financial
Institutions Examination Council (FFIEC). The FFIEC is a ``formal
interagency body empowered to prescribe uniform principles,
standards, and report forms for the [F]ederal examination of
financial institutions'' by the member agencies listed above and the
State Liaison Committee ``and to make recommendations to promote
uniformity in the supervision of financial institutions.'' Federal
Financial Institutions Examination Council, http://www.ffiec.gov
(last visited March 30, 2020). The State Liaison Committee was added
to FFIEC in 2006 as a voting member.
---------------------------------------------------------------------------
Agricultural Marketing Service (AMS) of the U.S.
Department of Agriculture (USDA),\66\
---------------------------------------------------------------------------
\66\ The Grain Inspection, Packers and Stockyards Administration
(GIPSA) was eliminated as a stand-alone agency within USDA in 2017.
The functions previously performed by GIPSA have been incorporated
into the Agricultural Marketing Service (AMS), and ECOA reporting
now comes from the Packers and Stockyards Division, Fair Trade
Practices Program, AMS.
---------------------------------------------------------------------------
[[Page 27406]]
Department of Transportation (DOT);
Farm Credit Administration (FCA);
Federal Trade Commission (FTC);
Securities and Exchange Commission (SEC); and
Small Business Administration (SBA).\67\
---------------------------------------------------------------------------
\67\ 15 U.S.C. 1691c.
---------------------------------------------------------------------------
In 2019, none of the 11 ECOA enforcement agencies brought public
enforcement actions for violations of ECOA. Below is an overview of the
year-to-year combined ECOA enforcement actions at all Federal agencies
since 2012:
---------------------------------------------------------------------------
\68\ This table identifies public enforcement actions by the
year they were initiated (when filed and announced publicly).
Table 3--ECOA Enforcement by All Federal Agencies
------------------------------------------------------------------------
Total public
Calendar year enforcement
actions
------------------------------------------------------------------------
2012................................................. \68\ 17
2013................................................. 9
2014................................................. 2
2015................................................. 5
2016................................................. 3
2017................................................. 1
2018................................................. 0
2019................................................. 0
------------------------------------------------------------------------
7.1.2 Violations Cited During ECOA Examinations
Among institutions examined for compliance with ECOA and Regulation
B, the FFIEC agencies reported that the most frequently-cited
violations were as follows:
---------------------------------------------------------------------------
\69\ 12 CFR 1002.4(a), 1002.4(b), 1002.6(b).
\70\ 12 CFR 1002.5(b).
\71\ 12 CFR 1002.4(a).
\72\ 12 CFR 1002.7(d)(1).
\73\ 12 CFR 1002.9(a)(1), (a)(2), (b)(1), (b)(2), (c)(1).
\74\ 12 CFR 1002.9(a)(2), (b)(2).
\75\ 12 CFR 1002.9(a)(1)(i), (c)(2).
\76\ 12 CFR 1002.9(a)(1), (a)(2), (b)(2).
\77\ 12 CFR 1002.9(a)(1)(i), (a)(1)(ii), (a)(2).
\78\ 12 CFR 1002.12(b)(1).
\79\ 12 CFR 1002.12(b).
\80\ 12 CFR 1002.12(b)(1).
Table 4--Regulation B Violations Cited by FFIEC Agencies, 2019
------------------------------------------------------------------------
Regulation B violations: 2019 FFIEC agencies reporting
------------------------------------------------------------------------
12 CFR 1002.4(a), (b), 1002.5(b), CFPB,\69\ FDIC,\70\
1002.6(b), 1002.7(d)(1): Discrimination. FRB,\71\ OCC.\72\
Discrimination on a prohibited basis in a
credit transaction; Discouragement of
prospective applicants on a prohibited
basis; A creditor shall not inquire about
the race, color, religion, national
origin, or sex of an applicant or any
other person in connection with a credit
transaction; Improperly considering
receipt of public assistance in a system
of evaluating applicant creditworthiness;
Improperly requiring the signature of the
applicant's spouse or other person..
12 CFR 1002.9(a)(1), (a)(2), (b)(1), CFPB,\73\ FDIC,\74\
(b)(2), (c): Adverse Action. FRB,\75\ NCUA,\76\
Failure to provide notice to the applicant OCC.\77\
30 days after receiving a completed
application concerning the creditor's
approval of, counteroffer or adverse
action on the application; failure to
provide appropriate notice to the
applicant 30 days after taking adverse
action on an incomplete application;
failure to provide sufficient information
in an adverse action notification,
including the specific reasons for the
action taken..
12 CFR 1002.12(b)(1): Record Retention..... CFPB,\78\ NCUA,\79\
OCC.\80\
Failure to preserve application records. ...........................
------------------------------------------------------------------------
Among institutions examined for compliance with ECOA and Regulation
B, the Non-FFIEC agencies reported that the most frequently-cited
violations were as follows:
Table 5--Regulation B Violations Cited by Non-FFIEC ECOA Agencies, 2019
------------------------------------------------------------------------
Regulation B violations: 2019 Non-FFIEC agencies
------------------------------------------------------reporting---------
12 CFR 1002.9(a)(1)(i), (a)(2), (c): FCA
Adverse Action.
Failure to provide notice to the applicant ...........................
30 days after receiving a completed
application concerning the creditor's
approval of, counteroffer or adverse
action on the application; failure to
provide sufficient information in an
adverse action notification, including the
specific reasons for the action taken;
failure to provide ECOA notice.
12 CFR 1002.13: Failure to request and FCA
collect information for monitoring
purposes.
------------------------------------------------------------------------
The AMS, SEC and the SBA reported that they received no complaints
based on ECOA or Regulation B in 2019. In 2019, the DOT Office of
Aviation Enforcement and Proceedings reported that it may have received
a relatively small number of consumer inquiries or complaints
concerning credit matters possibly covered by ECOA, which it processed
informally. The FTC is an enforcement agency and does not conduct
compliance examinations.
7.2 Referrals to the Department of Justice
In 2019, four FFIEC agencies (CFPB, FDIC, FRB, and NCUA) made a
total of seven referrals to the DOJ involving discrimination in
violation of ECOA. A brief description of those matters follows.
As reported in section 6.4.2, in 2019, the Bureau referred three
matters to the DOJ. Those referrals involved: Discrimination based on a
pattern or practice of redlining in mortgage origination based on race;
discrimination based on receipt of public assistance income in mortgage
origination; and discrimination based on race and national origin in
auto origination.
[[Page 27407]]
In 2019, the FDIC referred two matters to the DOJ. The first
referral involved discrimination in auto origination on the prohibited
basis of the applicant's receipt of income derived from a public
assistance program. The second referral involved discrimination in the
underwriting of commercial loans on the prohibited basis of religion.
The FRB referred one matter to the DOJ in 2019. The referral
involved pricing discrimination based on national origin, race, and
sex.
In 2019, the NCUA referred one matter to the DOJ involving
discrimination on the prohibited basis of age.
Table 6--Combined ECOA Referrals to DOJ
------------------------------------------------------------------------
Number of
Calendar year referrals to DOJ
------------------------------------------------------------------------
2012................................................. 12
2013................................................. 24
2014................................................. 18
2015................................................. 16
2016................................................. 20
2017................................................. 11
2018................................................. 2
2019................................................. 7
------------------------------------------------------------------------
7.3 Reporting on HMDA
The Bureau's annual HMDA reporting requirement calls for the
Bureau, in consultation with HUD, to report annually on the utility of
HMDA's requirement that covered lenders itemize loan data in order to
disclose the number and dollar amount of certain mortgage loans and
applications, grouped according to various characteristics.\81\ The
Bureau, in consultation with HUD, finds that itemization and tabulation
of these data furthers the purposes of HMDA.
---------------------------------------------------------------------------
\81\ 12 U.S.C. 2807.
Appendix A: Defined Terms
------------------------------------------------------------------------
Term Definition
------------------------------------------------------------------------
AI................................................ Artificial
Intelligence.
AMS............................................... Agricultural
Marketing Service
of the U.S.
Department of
Agriculture.
ANPR.............................................. Advance Notice of
Proposed
Rulemaking.
Bureau or CFPB.................................... The Bureau of
Consumer Financial
Protection or
Consumer Financial
Protection Bureau.
CDFI.............................................. Community
Development
Financial
Institutions.
CDFI Fund......................................... Community
Development
Financial
Institutions Fund.
CMS............................................... Compliance
Management System.
Dodd-Frank Act.................................... The Dodd-Frank Wall
Street Reform and
Consumer Protection
Act.
DOJ............................................... U.S. Department of
Justice.
DOT............................................... U.S. Department of
Transportation.
ECOA.............................................. The Equal Credit
Opportunity Act.
EGRRCPA........................................... Economic Growth,
Regulatory Relief,
and Consumer
Protection Act.
FCA............................................... Farm Credit
Administration.
FCRA.............................................. Fair Credit
Reporting Act.
FDIC.............................................. Federal Deposit
Insurance
Corporation.
Federal Reserve Board or FRB...................... Board of Governors
of the Federal
Reserve System.
FFIEC............................................. Federal Financial
Institutions
Examination
Council--the FFIEC
member agencies are
the Board of
Governors of the
Federal Reserve
System (FRB), the
Federal Deposit
Insurance
Corporation (FDIC),
the National Credit
Union
Administration
(NCUA), the Office
of the Comptroller
of the Currency
(OCC), and the
Bureau of Consumer
Financial
Protection
(Bureau). The State
Liaison Committee
was added to FFIEC
in 2006 as a voting
member.
FTC............................................... Federal Trade
Commission.
GIPSA............................................. Grain Inspection,
Packers and
Stockyards
Administration of
the U.S. Department
of Agriculture.
HCA............................................... Housing counseling
agency.
HMDA.............................................. The Home Mortgage
Disclosure Act.
HUD............................................... U.S. Department of
Housing and Urban
Development.
LAR............................................... Loan Application
Registers.
ML................................................ Machine Learning.
MRA............................................... Matters Requiring
Attention.
NAL............................................... No-Action Letter.
NCUA.............................................. The National Credit
Union
Administration.
NPRM.............................................. Notice of Proposed
Rulemaking.
OCC............................................... Office of the
Comptroller of the
Currency.
OFLEO............................................. Office of Fair
Lending and Equal
Opportunity.
OI................................................ Office of
Innovation.
RFI............................................... Request for
Information.
SBA............................................... Small Business
Administration.
SBREFA............................................ Small Business
Regulatory
Enforcement
Fairness Act.
SEC............................................... Securities and
Exchange
Commission.
SR................................................ Supervisory
Recommendations.
USDA.............................................. U.S. Department of
Agriculture.
------------------------------------------------------------------------
Signing Authority
The Director of the Bureau, having reviewed and approved this
document, is delegating the authority to electronically sign this
document to Laura Galban, a Bureau Federal Register Liaison, for
purposes of publication in the Federal Register.
Dated: May 5, 2020.
Laura Galban,
Federal Register Liaison, Bureau of Consumer Financial Protection.
[FR Doc. 2020-09890 Filed 5-7-20; 8:45 am]
BILLING CODE 4810-AM-P
