News & Analysis as of

Fair Lending Financial Services Industry

Orrick, Herrington & Sutcliffe LLP

OCC releases CRA evaluations for January 2026

On February 2, the OCC released its CRA performance evaluations for 29 national banks and federal savings associations, assessing how well these institutions met the credit needs of their communities, including low- and...more

Orrick, Herrington & Sutcliffe LLP

Senators pen letter urging CFPB to rescind its ECOA disparate impact rule

On February 3, several U.S. senators sent a letter to CFPB Acting Director Russell Vought urging the Bureau to rescind its proposed rule that would end the ECOA’s disparate impact test, which would prevent the CFPB from...more

Sheppard Mullin Richter & Hampton LLP

New Jersey AG Announces Comprehensive Disparate Impact Rules

On December 17, 2025, the New Jersey Attorney General announced that the Division on Civil Rights adopted new rules clarifying disparate impact discrimination liability under the New Jersey Law Against Discrimination. The...more

GeoDataVision

Fair Lending: The REMA Problem Needs to Be Addressed by Bank Regulators

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During the Biden presidency the prudential bank regulators and the DOJ began to prosecute cases of alleged redlining much more aggressively than had been historical practice. A key concept in almost all cases was the idea of...more

Troutman Pepper Locke

New Jersey's Big Bet on Disparate Impact: What the AG's New Rules Mean for Lenders and AI — Regulatory Oversight Podcast

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In this special crossover episode of Regulatory Oversight and The Consumer Finance Podcast, Chris Willis is joined by colleagues Lori Sommerfield and Matthew Berns to discuss New Jersey's sweeping new disparate impact...more

MoFo Tech

AI Trends For 2026 - AI and Algorithmic Bias in Financial Services

MoFo Tech on

With the exponential growth of AI technologies, financial institutions must address algorithmic bias head on, as it is one of the most significant emerging issues in certain core activities, including credit underwriting,...more

Baker Donelson

Disparate Impact Liability Is Top of Mind – Is Your Financial Institution Ready?

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As 2026 kicks into high gear, all signs point to another year of jaw-dropping headlines as federal financial regulators move swiftly to implement many of the policy changes found in executive orders and other directives...more

Troutman Pepper Locke

2025 State AG Year in Review

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State attorneys general (AGs) are among the most active and influential regulators in the U.S., using broad statutory authority, political visibility, and growing technical knowledge to shape policy and enforcement across...more

Orrick, Herrington & Sutcliffe LLP

CFPB receives rulemaking petition to remove Regulation C

On January 12, the CFPB received a petition from a nonprofit law firm urging the Bureau to rescind Regulation C, 12 C.F.R. § 1003, and Appendix B to Part 1003. ...more

Orrick, Herrington & Sutcliffe LLP

CFPB’s 2024 fair lending report outlines new focus in fair lending oversight

On December 23, the CFPB released its annual fair lending report, which reviews the agency’s enforcement and supervision activities for 2024 and described a significant policy shift in fair lending oversight since the close...more

Troutman Pepper Locke

CFPB Signals Issuance of Interim Final Rules on Section 1071 and Section 1033 Amid Funding Constraints

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In two recent litigation status reports, the Consumer Financial Protection Bureau (CFPB or Bureau) indicated that it is working to issue interim final rules for both Section 1071 and Section 1033 in light of an opinion from...more

Orrick, Herrington & Sutcliffe LLP

OCC releases CRA evaluations for November 2025

On December 1, the OCC released its CRA performance evaluations for 32 national banks and federal savings associations on how well they meet the credit needs in their communities, including low- and moderate-income...more

Orrick, Herrington & Sutcliffe LLP

CFPB proposes changes to Regulation B on disparate impact and other provisions

On November 13, the CFPB published a proposed rule in the Federal Register to amend Regulation B, which implements the ECOA. ...more

GeoDataVision

Regulatory Compliance: When Statistical Significance Fails

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In October 2021, the then Attorney General, Merrick Garland, announced the Combating Redlining Initiative (“CRI”) Shortly thereafter, federal banking regulators began a record-breaking number of referrals to the Department of...more

GeoDataVision

Understanding Statistical Significance Analysis for Regulatory Compliance

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If you are worried about “redlining” you’d better understand statistical significance - The perennial question facing all banks is, “What volume of lending in Majority-Minority census tracts and mortgages extended to...more

Orrick, Herrington & Sutcliffe LLP

Mortgage lender files writ of cert. with SCOTUS

On August 25, the U.S. Supreme Court received a writ of certiorari from a mortgage lender (the petitioner) challenging a decision by the U.S. Court of Appeals for the 2nd Circuit upholding a jury verdict finding the...more

Troutman Pepper Locke

CFPB Industry Impact Uncertain Amid Priority Shift, Staff Cuts

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On April 16, the Consumer Financial Protection Bureau released a memo to staff outlining its new supervision and enforcement priorities for 2025. These priorities appear to be intended to reverse some of the more prominent...more

Troutman Pepper Locke

FDIC Updates Consumer Compliance Examination Manual to Eliminate Disparate Impact Analysis in Response to President Trump’s...

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On August 29, the Federal Deposit Insurance Corporation (FDIC) announced updates to its Consumer Compliance Examination Manual, marking a pivotal shift in how potential discrimination under the Equal Credit Opportunity Act...more

GeoDataVision

The Regulatory Compliance Ping Pong Game

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Regulatory Compliance has been an ever-evolving process for decades. But at least the changes have been mostly steady and slow. But during the last 15 years the pace of regulatory change has not only accelerated, but it’s...more

Guidepost Solutions LLC

High-Risk Enforcement Areas for Financial Services Providers: AI, Lending, and Privacy

Did you know that U.S. federal regulators issued approximately 173 public enforcement actions against financial services providers in 2024? Over 35% of those enforcement actions resulted in some form of monetary penalty,...more

Orrick, Herrington & Sutcliffe LLP

Fed officials emphasize need for progress on financial inclusion

Recently, two members of the Fed, the Vice Chair for Supervision, Michelle Bowman, and Governor Michael Barr, both spoke on the ongoing challenges and opportunities in advancing financial inclusion across the U.S. Both...more

GeoDataVision

Wild Times for the Community Reinvestment Act

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Join top CRA experts Dr. Ken Thomas, Len Suzio and Dean Stockford for a wide ranging discussion on the Community Reinvestment Act....more

Ballard Spahr LLP

Community Groups File Lawsuit Seeking to Force CFPB to Implement the Section 1071 Rule

Ballard Spahr LLP on

The saga of the CFPB’s section 1071 small business data collection and reporting rule continues. Rise Economy, fka California Reinvestment Coalition (Rise), the National Reinvestment Coalition (NCRC), the Main Street Alliance...more

Sheppard Mullin Richter & Hampton LLP

Massachusetts AG Settles with Student Loan Lender on AI-Based Fair Lending Violations

On July 10, Massachusetts Attorney General Andrea Joy Campbell announced a $2.5 million settlement with a student loan company to resolve allegations that its underwriting practices violated the Massachusetts Consumer...more

Hudson Cook, LLP

No AI Law? No Problem. How Massachusetts Attacked AI Underwriting Under Existing State Statutes

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On July 10, 2025, the Massachusetts Attorney General (AGO) entered into an Assurance of Discontinuance (AOD) with a private student loan lender (the Company), resolving allegations that the Company's underwriting practices...more

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