CFPB Issues Report on Consumers with Limited Credit Histories
On May 5, the CFPB issued a report on consumers that have limited credit histories. The report found that approximately 26 million consumers are “credit invisible,” meaning that they do not have any credit history with a nationwide consumer reporting agency. According to the report, such consumers were more likely to be black, Hispanic, or live in low-income neighborhoods. Consumer reporting agencies collect information about consumers’ credit histories and provide credit reports and credit scores based on this information. The CFPB observed that these reports and scores are important in ensuring the availability of credit because “[m]ost decisions to grant credit and set interest rates for loans are made based on information contained in credit reports.” Those consumers that are “credit invisible” may “face greater hurdles in getting credit.” The report’s analysis was based on a random sample of de-identified credit records that the CFPB purchased from a credit bureau. It is unclear what course of action the CFPB may follow based on the results of this report.
FDIC Hosting Presentation on CFPB Mortgage Rule Compliance
The FDIC’s Division of Depositor and Consumer Protection is hosting a teleconference presentation on compliance with the CFPB’s mortgage rules from 2-3:30 p.m., Thursday, May 21. The presentation will cover observations made by FDIC examiners regarding financial institutions’ compliance with the CFPB’s mortgage rules. Attendance is free and open to the public. Register here.