CFPB Releases ECOA Baseline Review Modules

The Consumer Financial Protection Bureau (CFPB) recently released its Equal Credit Opportunity Act (ECOA) Baseline Review Modules. The ECOA Baseline Review Modules will be used by CFPB examiners during ECOA baseline reviews to identify and analyze risks of ECOA violations, to facilitate the identification of certain types of ECOA and Regulation B violations, and to inform fair lending prioritization decisions for future CFPB reviews. ECOA baseline reviews are one type of fair lending review conducted by the CFPB, in addition to ECOA targeted reviews and Home Mortgage Disclosure Act (HMDA) reviews.

An ECOA targeted review includes an in-depth look at a specific area of fair lending risk, and is conducted using the ECOA Examination Procedures within the CFPB Supervision and Examination Manual. A HMDA review includes transactional testing for HMDA data accuracy, and is conducted using the HMDA Examination Procedures within the CFPB Supervision and Examination Manual.

While the CFPB only has direct supervisory authority over financial institutions with assets in excess of $10 Billion, other regulatory agencies may use similar modules during their examination process.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance.