By Suraj Byanjankar
Jan 7, 2015
Earlier in 2014, the Consumer Financial Protection Bureau (CFPB) issued a report on its plan, purpose, and proposed action on how to address issues within the subject of Fair Lending.
But one might first ask the question: “What is Fair Lending?” Fair Lending falls under the Fair Housing Act and the Equal Credit Opportunity Act. Under both Acts, it is unlawful for a lender to discriminate on a prohibited basis in a residential real estate-related transaction.
The CFPB’s report addresses how they would deal with certain issues regarding Fair Lending. The Director of the CFPB, Richard Cordray, makes this statement in the beginning of the report:
“At the Consumer Bureau, we are fierce advocates for a consumer financial marketplace that allows all Americans to pursue a path to greater opportunity. To that end, we are working to remove the unnecessary obstacles too many Americans face in the consumer financial marketplace.”
In the report, the CFPB touches on:
- Risk-based prioritization and the fair lending toolkit
- Addressing fair lending risk: Supervision and enforcement in housing, automobile, and other financial markets
- Promoting fair lending compliance, education, and dialogue: Outreach to private industry, fair lending, fair housing, civil rights, consumer and community advocates
- Interagency engagement
NFM Lending strongly supports the CFPB’s efforts and takes this matter very seriously. If you would like to learn more about Fair Lending or to read the CFPB report in its entirety, it can be located here.
If you are looking to purchase or refinance a home, click here to contact one of our Licensed Mortgage Loan Originators to learn what mortgage loan is right for you. NFM Lending is an Equal Housing Lender.
These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact us.