The final rule is essential in helping to reduce risks of discrimination in automated-valuation models used in the mortgage market, according to CFPB Director Rohit Chopra and Deputy Director Zixta Martinez.
Industry attorneys said it’s unclear what the CFPB might do about auto purchases that include negative equity from a prior vehicle, given the bureau’s lack of jurisdiction over auto dealers.
The CFPB set new implementation dates for its small business lending data reporting rule and the payday lending rule. However, the new deadlines could still face court challenges.
How the bureau delegates on rulemaking has changed in recent years under Rohit Chopra, according to John Tonetti, former senior policy analyst in the Office of Supervision Policy.
Supreme Court strikes down Chevron deference; Fifth Circuit denies CFPB’s attempt to transfer venue; Alabama Supreme Court upholds borrower payments during foreclosure trials; CFPB resolves a 2023 lawsuit involving attempts to avoid payment of fines; Supreme Court rules in on use of administrative proceedings.
The bank recently committed $3 million to an appraisal diversity initiative and is engaged in various internal efforts to reform the appraisal industry.
The final rule on the use of automated valuation models in mortgage lending includes a standard that seeks to ensure compliance with nondiscrimination laws.