The CFPB recently issued a special edition of Supervisory Highlights describing its fair credit supervisory activity in "the indirect automobile lending market." It reported that supervisory examination teams have been conducting targeted ECOA compliance reviews of "indirect auto lenders," including examinations of credit approvals and denials, wholesale buy rates quoted to dealers, and what the CFPB characterizes as "any discretionary markup or adjustments to the buy rate." The report also announced that these fair credit examinations have resulted in non-public, supervisory resolutions with several auto "lenders" involving approximately $56 million in consumer redress. 

The fair credit exam report was issued simultaneously with the proposed larger participant rule for the automobile financing market, which will subject larger nonbank participants to targeted ECOA compliance examinations once it is finalized. It thus underscores the continued emphasis on automotive ECOA compliance, noting that "indirect auto lending remains a significant focus of supervisory reviews, especially for indirect auto lenders that maintain discretionary markup policies and have not yet been subject to a fair lending review."

In this webinar, we will discuss fair credit compliance topics of interest to auto finance industry participants. We will conclude with some concrete recommendations for auto finance companies on preparing for ECOA compliance examinations by the CFPB.

Highlights

  • Disparate impact developments, including implications of the grant of the petition for a writ of certiorari in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project 
  • The fair credit edition of Supervisory Highlights and dealer finance charge participation 
  • ECOA risks associated with underwriting and servicing functions 
  • ECOA compliance management steps and suggestions 
  • Application of the attorney-client and self-testing privileges 

Program

12:00 PM - 1:00 PM ET | Webinar

Moderator

Alan S. Kaplinsky, Practice Leader
Consumer Financial Services Group

Presenters

Peter N. Cubita
Consumer Financial Services Group

John L. Culhane, Jr.
Consumer Financial Services Group

Christopher J. Willis
Consumer Financial Services Group

This program is open to Ballard Spahr clients and members of the financial services industry. There is no cost to attend. This program is not eligible for continuing education credits.

Please register at least two days before the webinar. Login details will be sent to all approved registrants. For more information, contact Lisa Prickril at prickrill@ballardspahr.com.

Related Practice

Consumer Financial Services