According to Auto Remarketing, CFPB guidance questioned by industry and lawmakers.
Ever since the Consumer Financial Protection Bureau released its fair lending guidance to indirect auto lenders on March 21, dealers and lenders have questioned the basis for the guidance — and now Washington lawmakers are, as well.
The foundation for the CFPB’s guidance wholly rests on a disputed theory of liability called “disparate impact.” Under this theory, if the auto finance system results in minorities paying more for credit than non-minorities in the same credit tier, then unintentional discrimination is taking place.
