- RV Business - http://www.rvbusiness.com -
CFPB Begins to Show Cards on Lending Stance
Posted By RVBusiness On November 18, 2013 @ 3:40 pm In Breaking News | No Comments
The Consumer Financial Protection Bureau (CFPB) has yet to put out any auto lending regulations or sue any auto lenders, but last week it gave the clearest picture yet of how it thinks auto lending should change.
Automotive News reported that dealers and lenders have been clamoring for such guidance in the wake of a March bulletin from the CFPB on discrimination in auto lending and subsequent disclosures by lenders that they are under investigation.
The peek behind the curtain started Nov. 12 when CFPB chief Richard Cordray testified at a Senate Banking Committee hearing and continued Thursday at a CFPB auto lending forum in Washington. According to Automotive News, the main takeaways were:
Patrice Ficklin, the agency’s fair-lending director, said Thursday statistical analysis of loan data shows that even with factors such as credit scores held constant, interest rates on the car loans financed by a lender can be 10, 20 or 30 basis points higher on average for minority buyers than for white buyers. An extra 30 basis points can translate into $216 over a five-year loan, she said, amounting to “tens of millions of dollars in overpayments each year.”
“The order of the day on those things is confidentiality unless or until you get to the point of taking some sort of public action,” Cordray said. Prodded by Sen. Jerry Moran, R-Kan., on the reliability of the CFPB’s statistical methods, he added: “Anything we do could ultimately be tested in court, and the court would have to have confidence in our methods.”
Article printed from RV Business: http://www.rvbusiness.com
URL to article: http://www.rvbusiness.com/2013/11/cfpb-begins-to-show-cards-on-lending-stance/
Copyright © 2009 RV Business. All rights reserved.