Webcast looks at agencies' fair lending focus
Lori Sommerfield and Jeremiah Buckley of BuckleySandler during Wednesday's webcast.
April 24, 2014 – CFPB’s and NCUA’s continuing focus on fair lending issues was detailed for credit unions Wednesday during NAFCU’s webcast on fair lending, the second in a series held on this topic.
Jeremiah Buckley, a founding partner at BuckleySandler, discussed on the CFPB’s history in fair lending examination and enforcement. “Fair lending has become a very important focus since the Obama administration took over,” Buckley said.
Lori Sommerfield discussed guidance issued by the CFPB on fair lending, and noted that “fair lending is a component of every CFPB examination.” Buckley predicted that CFPB enforcements in response to fair lending violations will continue.
“You saw the Ally settlement, you’ll see more settlements as we go forward,” he said, referring to $98 million settlement the CFPB announced with Ally Financial Inc. in December. The settlement resolved a charge that Ally had discriminated against 235,000 minority consumers.
Buckley and Sommerfield agreed that NCUA has focused more on “baseline” fair lending exams, which Sommerfield explained as “kick the tires” exams. Buckley said credit unions should expect “ramping up” from NCUA in its fair lending focus in the future.
Buckley regularly provides strategic and legal advice on compliance risk management and enforcement issues involving federal regulators. Sommerfield has practiced extensively in the areas of fair and responsible lending, and has more than 20 years of experience in consumer financial protection law and compliance risk management.
Both will speak again during NAFCU’s third webcast on fair lending on May 28, which will focus on best practices and indirect auto lending.
NAFCU webcast: Fair Lending II
NAFCU webcast: Fair Lending III