On March 16, the CFPB issued a revised UDAAP exam manual. The new guidance contains additional material, and expressly states that both intentional and unintentional discriminatory acts or practices that might otherwise fall outside the scope of the Equal Credit Opportunity Act might be considered “unfair” under UDAAP. Although not altogether unexpected, this announcement represents a substantial expansion of the regulator’s authority to police practices that it deems discriminatory. The CFPB’s renewed focus on fair lending, along with its position that discriminatory acts and practices might trigger its UDAAP authority, means that all players in the financial services space should re-double their efforts to shore up fair lending and fair servicing controls.
On Wednesday, March 23 at 3:00 PM Bradley attorneys Andrew Narod and Christopher Friedman will present their initial impressions and analysis regarding the new UDAAP exam manual, and discuss ways in which financial services companies can continue mitigating their fair lending risk.