In what is clearly a preliminary statement, the banking agencies and CFPB have for the first time addressed alternative consumer data, actively encouraging its use despite stipulating an array of general concerns and supervisory injunctions. The statement may well provide significant regulatory relief for cash-flow data and second-look programs, but is otherwise only general in its approach to alternative data. As a result, lenders subject to the statement will need additional supervisory assurances to limit compliance, legal, and reputational risk. This guidance may now be more likely to be both forthcoming and favorable, but regulatory exemptions appear unlikely.
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