On Friday, the Consumer Financial Protection Bureau (CFPB) set out its top Fair Lending priorities for 2017:
- Mortgage and Student Loan Servicing; and
- Small Business Lending.
The CFPB also marked the 40th anniversary of the Equal Credit Opportunity Act (ECOA) and noted its successes during the last five years: (1) More than $400 million in payments and credits; (2) to over a half million consumers who experienced lending discrimination; and (3) greater efforts by lenders to monitor their own lending practices for possible discrimination.
This last success is also a complement to many lenders. While mortgage origination, auto lending (both indirect and direct), and other areas of consumer lending also remain important, the CFPB can increase its focus in these three new areas while continuing to work with lenders that have not yet made significant progress in building strong compliance cultures.