House Financial Services Committee moves to strengthen fair lending enforcement

Passage of the Fair Lending for All Act will increase fair lending testing, improve data collection and disclosure, and expand enforcement capacity

Last week, the House Financial Services Committee reported out the Fair Lending for All Act, a comprehensive approach to fair lending testing, data collection and enforcement. 

The Fair Lending for All Act expands the Consumer Financial Protection Bureau’s capacity and commitment to carry out match-pair testing, a proven method to uncover lending discrimination.  Previous match-pair testing has uncovered discouragement in discrimination in the small business Paycheck Protection Program, auto lending, and other types of credit.  

The bill also prohibits discrimination on the basis of sexual orientation and gender identity, creates new criminal penalties for violations, and enhances ECOA’s civil enforcement provisions by providing organizations with standing to bring fair lending cases and ensuring that any entity involved in the credit process is subject to fair lending laws.

The bill is supported by over 70 civil rights, community and consumer organizations.

NCRC would like to thank Subcommittee Chair Al Green and Chair Maxine Waters for their leadership on this issue and urges the passage of this important legislation without delay.

Tom Feltner is NCRC’s Vice President of Policy and Research.