(NNPA)—As a New Year approaches, fair lending will be the priority for the nation’s consumer financial cop on the beat. Mortgage and student loan servicing along with redlining and small business lending will be a triple-focus in 2017 for the Consumer Financial Protection Bureau.
“While the Bureau has taken important strides in our efforts to protect consumers from credit discrimination and broaden access to credit, we continue to identify new and emerging fair lending risks and we will monitor institutions for compliance,” said Patrice Ficklin, CFPB’s associate director for fair lending.
Specifically, CFPB will evaluate whether lenders have practiced one or more of the following:
Intentionally avoided lending in minority neighborhoods;
Whether racial or ethnic concerns affect how loan servicers work with borrowers who are behind on either a mortgage or student loan; and
Whether discriminatory practices affected access to credit for minority and women-owned businesses.
For all consumers, CFPB’s 2017 priorities are an encouraging sign. But for Black, Latino and other consumers of color, heightened fair lending enforcement could signal less predatory and discriminatory lending that robs people of their hard-earned livings. With heightened monitoring and related enforcement actions, lenders and creditors who violate fair lending laws will pay a price, and consumers will hold on to more of their own money.