The Consumer Financial Protection Bureau’s fair lending team will increase its focus on three areas next year: redlining, mortgage and student loan servicing and small business lending.
Over the last five years, the fair lending team has worked to ensure consumers are not turned down or made to pay more for auto loans, credit cards or mortgages based upon their race or ethnicity. As a result, more than $400 million in payments and credits have been made to more than 500,000 consumers who were discriminated against.
The bureau will continue to identify new and emerging fair lending risks and monitor institutions to make sure they are complying.
In 2017, the lending team will focus its efforts on redlining by evaluating whether lenders are intentionally avoiding lending to minority neighborhoods.
Greater attention will also be focused on mortgage and student loan servicing, ensuring that defaulting student loan or mortgage holder payments are provided the same solutions regardless of their race or ethnicity.
In addition, small business lending, particularly women-owned and minority-owned businesses, will receive additional protection as the CFPB is required to take steps to ensure these individuals have fair access to credit.