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A bill introduced Monday by House Financial Services Committee member Marlin Stutzman, R-Ind., would nullify CFPB's current guidance on indirect auto lending and put parameters and requirements in place for any future guidance on the issue.

CFPB released its guidance on indirect auto lending last spring. NAFCU noted that the guidance appeared to put credit unions between auto dealers and the bureau, which has no direct supervisory authority over auto dealers under the Dodd-Frank Act.

The guidance potentially sets the stage for making indirect lenders, including credit unions, liable for auto dealers' fair lending violations. In Bulletin 2013-02, which the Stutzman bill would nullify, CFPB focuses on potential for pricing disparities on the basis of race, national origin and other prohibited factors by dealers that facilitate funding for consumers' auto purchases through indirect lenders. Lenders could be held liable for disparate treatment and disparate impact if there are disparities within the indirect lender's portfolio.

For any future guidance on indirect auto financing, the bill would require that:

• the guidance be available for public notice and comment before it is made final;
• CFPB make available to the public – including via its website – all studies, data, methodologies, analyses, and other information used to prepare the guidance; and
• CFPB conduct a study on the costs and impacts of the guidance to consumers and women-owned, minority-owned businesses and small businesses.

CFPB is set to hold a field hearing on auto finance Sept. 18 in Indianapolis, Ind., where it could announce a new regulatory policy on auto lending.