Bloomberg Law, July 21, 2020: Coronavirus Stimulus Loans Face Fair Lending Scrutiny From CFPB
The Consumer Financial Protection Bureau is scouring banks’ books for potential fair lending violations related to coronavirus emergency loans, but there are concerns that the bureau may not act on its findings.
Top CFPB officials July 16 said they will be reviewing banks’ Paycheck Protection Program lending patterns under the Equal Credit Opportunity Act, a 1974 law that bars discrimination based on gender, race, and ethnicity, among other factors.
Consumer advocates applauded the CFPB’s fair lending reviews, particularly with growing evidence that women, Black, Latino, and other borrowers haven’t had equal access to federal stimulus funds. But there is also a great deal of skepticism, given the lack of fair lending enforcement under the Trump administration.