The CFPB has issued its 24th Supervisory Highlights, sharing observations and findings from examinations in the areas of auto servicing, consumer reporting, debt collection, deposits, fair lending, mortgage origination, mortgage servicing, private education loan origination, payday lending, and student loan servicing.
The CFPB issues Supervisory Highlights “to help institutions and the general public better understand how the Bureau examines institutions for compliance with Federal consumer financial law.” The Summer 2021 report includes highlights from examinations that were completed from January 1, 2020 to December 31, 2020, but excludes pandemic-related highlights, which the CFPB covered in its 23rd issue. The primary findings in the Summer 2021 report include:
- Fair Lending. In the area of fair lending, CFPB examiners found violations of the Home Mortgage Disclosure Act (HMDA) and the Equal Credit Opportunity Act (ECOA). Examinations during the covered time period identified inaccurate HMDA data that was submitted by financial institutions, including “widespread” errors in the fields newly added to the HMDA loan application register beginning in 2018. The CFPB found that there were more errors for the HMDA fields that were added in 2018 as compared to other HMDA fields, which the CFPB blamed on deficient compliant management systems and poor data mapping.
The report also highlighted an alleged ECOA redlining violation for a practice that…