Several mortgage trade groups expressed support for a proposal from the CFPB to remove the use of disparate-impact liability under the Equal Credit Opportunity Act. Consumer advocates oppose the effort.
The Mortgage Bankers Association said a federal policy framework for AI will give lenders and technology partners the “certainty” needed to deploy the tech safely and responsibly. It will also limit state regulation.
The CFPB plans to issue guidance that will allow mortgage lenders to calculate the average prime offer rate in the event that the bureau runs out of funding.
“[When] we have a different administration, an administration that believes in enforcing the law, an administration that believes in a level playing field, the apparatus is all there to turn [the CFPB] back on,” Warren said.
While both parties agreed that the court’s preliminary injunction is still in effect, the CFPB asked the court not to use the injunction to address questions surrounding the bureau’s funding.
CFPB Acting Director Russell Vought is required by the Dodd-Frank Act to determine the amount of funding “reasonably necessary” to carry out the bureau’s responsibilities, according to consumer advocacy groups.
The new policy requires examiners to read out a statement before conducting company reviews, signaling a shift to more transparent, narrower exams focused on tangible consumer harm.
Sen. Elizabeth Warren, D-MA, though raised concerns about efforts by CFPB Acting Director Russell Vought and the Trump administration to “sideline” the CFPB.