CFPB reports highlight exam findings, Fair Lending
May 16, 2016 -- Two reports highlighting examination reports results and the Fair Lending enforcement activities last year have been recently released by the Consumer Financial Protection Bureau (CFPB).
The Fair Lending Report, dated last month, notes the agency’s actions in 2015 to “shine a light on unfair and discriminatory practices in the financial system.” In particular, Bureau Director Richard Cordray points to a joint effort with the Department of Justice in which CFPB resolved “the largest redlining case in history against Hudson City Savings Bank (since acquired by M&T Bank), which will pay nearly $33 million in direct loan subsidies, funding for community programs and outreach, and a civil penalty.” The case, Cordray states, arose out a fair lending supervisory review at Hudson City. According to CFPB, the savings bank provided unequal access to credit by structuring its business to avoid and thus discourage access to mortgages for residents in majority-Black-and-Hispanic neighborhoods in New York, New Jersey, Connecticut, and Pennsylvania.
In the Supervisory Highlights for Winter, 2016 (dated for a March release), the bureau shares recent supervisory observations in the areas of consumer reporting, debt collection, mortgage origination, remittances, student loan servicing, and fair lending. “One of the Bureau’s goals is to provide information that enables industry participants to ensure their operations remain in compliance with Federal consumer financial law,” the bureau states in the report.