Banks Take Blame
A new Urban Institute study suggests that banks are more likely to discriminate when it comes to minority borrowers, heightening concerns at a time with increased political risk related to racial equity and mortgage finance.
AVM Agonistes
As noted late yesterday, the CFPB has gotten a jump on FHFA and the banking agencies with the first step towards a long-delayed AVM rule demanded in the Dodd-Frank Act. It proposes AVM standards that will not only emphasize fair lending, but also extend to all originators, servicers, MIs, and even GSEs.
OCC FAQs Cast Some Light on Complex CRA Compliance Challenges
Attempting yet again to calm national-bank concerns about their CRA obligations, the OCC late yesterday issued FAQs laying out how it will judge CRA performance after rescinding the Trump Administration’s CRA standards (see Client Report CRA28), returning rules to the 1995 regime, and agreeing to work with the other agencies on a wholly-new CRA construct.
CFPB Takes up AVM Reform
The CFPB today got a jump on the banking agencies and FHFA, releasing a set of options to address fair-lending and other risks in automated-valuation models (AVMs), moving on a long-neglected mandate in the 2010 Dodd-Frank Act (see FSM Report CONSUMER14).