Dems Demand CFPB Action on Alternative-Data Underwriting
Sens. Brown (D-OH), Warren (D-MA), and Harris (D-CA) today demanded that the CFPB take immediate action to address ECOA and Reg B violations resulting from lender use of educational data in credit underwriting, urging new guidance, supervisory examinations, and even enforcement investigations to address the practices they say create a significant risk of unlawful discrimination.
Postal Banking Takes Small Step Forward
The House has packaged six appropriation measures into a “minibus” bill (H.R. 7617) approved as seems increasingly usual on party lines by a 217-197 vote. Included in the measure and a target of particular GOP objections is an amendment by Reps. Pascrell (D-NJ) and Kaptur (D-OH) appropriating $2 million to the U.S. Postal Service for pilot postal-banking programs.
Brown, Warren Threaten Powell, Fed Construct to Counter Leverage-Relief Proposal
Building on the vituperative tone Democrats are increasingly taking to discussions of any leverage-ratio relief, Sens. Brown (D-OH) and Warren (D-MA) today made it clear that, while they are taking a hands-off position for now with regard to Chairman Powell, they will expand their criticism of Vice Chairman Quarles – now strong and personal – to press the Fed to engage in what some consider fiscal actions if what they believe to be undue advocacy continues.
FHFA Fires Warning Shot at Mortgage Originators
Along with extending the authority granted to the GSEs to buy certain loans in forbearance until the end of August, the FHFA today announced that it will shortly share data with the CFPB to ensure that loans are originated only to borrowers who were likely to meet the qualified-mortgage “ability to repay” criterion.