CFPB Hones Its Fair Lending Agenda for 2017

A recent blog post from the CFPB indicates it will focus its Fair Lending efforts in three directions in 2017.  According to the post, the CFPB will increase its focus on: (a) redlining; (b) mortgage and student loan servicing; and (c) small business lending. 

Redlining. The Bureau’s has shown a renewed interest in redlining claims in the past two years.  In 2017, the Bureau “will continue to evaluate whether lenders have intentionally avoided lending in minority neighborhoods.” 

Mortgage and Student Loan Servicing. The Bureau’s turn to the mortgage and student lending markets is likely to take up where its focus on auto lenders and credit card providers left off.  The Bureau has indicated it will determine “whether some borrowers who are behind on their mortgage or student loan payments may have more difficulty working out a solution with the servicer because of their race or ethnicity.”  Entities in these markets should pay close attention to the Bureau’s recent use of mystery shoppers in other fair lending investigations. 

Small Business Lending.  Finally, the Bureau’s focus on small business lending should come as no surprise.  Its last two rule making agendas have included small business lending. Currently, the CFPB’s efforts have been in the pre-rule making stages, but it would not be surprising to see their “research” include examinations results as they move towards developing proposed regulations.