Federal regulators recently elaborated on their goals behind last month’s interagency Community Reinvestment Act proposal, which some fair lending advocates believe is not going to advance racial equity.

Mortgage lenders and brokers who participated in a small business review panel convened by the CFPB support making AVMs more accurate but are concerned about downstream financial and business impacts.

The CFPB reiterated that the Equal Credit Opportunity Act requires creditors to provide consumers notice if they decide to take an adverse action, even if it’s based on a “black-box” credit model.

In its annual report, the bureau highlights recent enforcement actions.

The rule affirms the terms under which state attorneys general can pursue claims under the Consumer Financial Protection Act, reflecting the bureau director’s desire to collaborate more closely with state authorities.

Attorneys believe the bureau categorizing some enforcement cases as fair lending-related, even without violations of the Equal Credit Opportunity Act, suggests a shift in its approach on the issue.

The bureau announced changes to examiners’ procedures, saying it will now scrutinize all covered markets for discriminatory practices under the “unfairness” standards.

Industry stakeholders have raised concerns that the use of qualitative factors and examiner judgment in evaluation of CRA-related activities can lead to inconsistent interpretations of the law.

The request comes in the wake of a media report that, of all large lenders, Wells Fargo had the biggest disparity between Black and white homeowners in refinancing approval rates.

For its part, the CFPB said it will take an “active leadership role” on the Federal Financial Institutions Examination Council’s Appraisal Subcommittee.