As the consumer lending industry continues to settle into the new regulatory landscape, the market for credit has tightened as lenders become more conservative and risk adverse.
Historically, when credit markets tighten, it signals a shift in the regulators' focus to consumers' access to credit, which brings attention to fair lending issues. Watch for a more focused look at fair lending supervision and enforcement. We take a deep dive into recent enforcement actions, including an overview of the CFPB's ECOA manual and the Bayesian Improved Surname Geocoding (BISG) proxy method; then we look ahead to the driving factors of fair lending issues in 2018, including the fair lending risks associated with Limited English Proficiency (LEP) borrowers.