The CFPB has issued its 24th Supervisory Highlights, sharing observations and findings from examinations in the areas of auto servicing, consumer reporting, debt collection, deposits, fair lending, mortgage origination, mortgage servicing, private education loan origination, payday lending, and student loan servicing.
The CFPB issues Supervisory Highlights “to help institutions and the general public better understand how the Bureau examines institutions for compliance with Federal consumer financial law.” The Summer 2021 report includes highlights from examinations that were completed from January 1, 2020 to December 31, 2020, but excludes pandemic-related highlights, which the CFPB covered in its 23rd issue. The primary findings in the Summer 2021 report include:
The report also highlighted an alleged ECOA redlining violation for a practice that “would have discouraged reasonable people in minority neighborhoods in Metropolitan Statistical Areas (MSAs) from applying for credit.” Among other practices, the CFPB found it relevant that the lender conducted a number of direct mail marketing campaigns “that featured models, all of whom appeared to be non-Hispanic white.” Additionally, the marketing materials of its “mortgage professionals” showed “only professionals who appeared to be non-Hispanic white” and the lender’s office locations were nearly all concentrated in majority non-Hispanic white areas.
As in past editions, the Summer 2021 report includes information about recent public enforcement actions that were a result, at least in part, of CFPB’s supervisory work. The CFPB highlighted four consent orders or settlements related to consumer overdraft fees, collateral protection insurance, and remittance-transfer services.