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The CFPB Director was at pains today to acknowledge the the "national conversation on racial inequality".
She issued a blog earlier this week saying the CFPB "is taking action to build inclusive financial system."
All good.
But CFPB's inaction on racial equality speaks louder.
She issued a blog earlier this week saying the CFPB "is taking action to build inclusive financial system."
All good.
But CFPB's inaction on racial equality speaks louder.
First, CFPB did nothing to address the incredible, vast disparities in Paycheck Protection Programs in time to change the outcome & make sure Black small businesses could access the capital they needed to stay afloat. https://ncrc.org/lending-discrimination-within-the-paycheck-protection-program/
ECOA applies to these loans. CFPB could have warned lenders that there would be consequences for racial and gender discrimination. It could have enforced the law.
Instead, CFPB just clarified notice provisions under ECOA.
https://files.consumerfinance.gov/f/documents/cfpb_ecoa-regulation-b_faqs-covid-19.pdf
Instead, CFPB just clarified notice provisions under ECOA.
https://files.consumerfinance.gov/f/documents/cfpb_ecoa-regulation-b_faqs-covid-19.pdf
There's section 1071, the small business lending data collection rule to track lending discrimination.
The rulemaking was delayed before the Director's time. But @CalReinvest had to sue to re-start it. And data collection stopped when COVID started. https://democracyforward.org/lawsuits/crc-v-cfpb-discriminatory-lending/
The rulemaking was delayed before the Director's time. But @CalReinvest had to sue to re-start it. And data collection stopped when COVID started. https://democracyforward.org/lawsuits/crc-v-cfpb-discriminatory-lending/
When @repcleaver asked about the disparities in #PPPloans & whether Blacks were harmed by discrimination during COVID, the Director said,"they're not starting in precisely the same place."
I keep getting stuck on "precisely" for a 10x wealth divide. https://www.brookings.edu/blog/up-front/2020/02/27/examining-the-black-white-wealth-gap/
I keep getting stuck on "precisely" for a 10x wealth divide. https://www.brookings.edu/blog/up-front/2020/02/27/examining-the-black-white-wealth-gap/
She did say CFPB is "trying to get the word out" on COVID-relief & she'd had "significant outreach as well to communities of color."
@SenatorMenendez noted yesterday that the outreach hadn't worked for Black & Latino homeowners. They are falling behind. https://www.nclc.org/images/pdf/special_projects/covid-19/IB_Covid_Black_Forbearance_Foreclosure.pdf
@SenatorMenendez noted yesterday that the outreach hadn't worked for Black & Latino homeowners. They are falling behind. https://www.nclc.org/images/pdf/special_projects/covid-19/IB_Covid_Black_Forbearance_Foreclosure.pdf
Second, CFPB is rolling back data collection under HMDA, the data collection around for over 40 years that lets us see racial discrimination.
@ncrc is suing to try to stop some of that rollback. https://ncrc.org/ncrc-local-groups-and-city-of-toledo-sue-cfpb-to-overturn-rule-that-undermines-detection-of-discrimination-in-mortgage-lending/
@ncrc is suing to try to stop some of that rollback. https://ncrc.org/ncrc-local-groups-and-city-of-toledo-sue-cfpb-to-overturn-rule-that-undermines-detection-of-discrimination-in-mortgage-lending/
CFPB's also whitewashed the Making Ends Meet report in its press release & omitted the most salient fact in it for our "national conversation": Blacks are 2x as likely as whites to have financial trouble.
https://twitter.com/DianeEThompson1/status/1288105979658338304
https://www.consumerfinance.gov/about-us/newsroom/cfpb-releases-making-ends-meet-survey/
https://twitter.com/DianeEThompson1/status/1288105979658338304
https://www.consumerfinance.gov/about-us/newsroom/cfpb-releases-making-ends-meet-survey/
Third, enforcement is lacking. The one discrimination case in 2 years, Townstone, is great. But it won't close the racial wealth gap. Especially when CFPB passes up chances to get money for Black homeowners. Still mad about Harbour.
https://twitter.com/DianeEThompson1/status/1275566562578239489
https://www.consumerfinance.gov/about-us/newsroom/cfpb-files-suit-against-mortgage-creditor-discriminatory-mortgage-lending-practices/
https://twitter.com/DianeEThompson1/status/1275566562578239489
https://www.consumerfinance.gov/about-us/newsroom/cfpb-files-suit-against-mortgage-creditor-discriminatory-mortgage-lending-practices/
Instead of enforcement, we get "skill building tools."
Blacks & others already have plenty of know-how about defending themselves from illegal discrimination. They've had practice.
What they don't have is backup from the CFPB. https://www.consumerfinance.gov/about-us/blog/bureau-taking-action-build-more-inclusive-financial-system/
Blacks & others already have plenty of know-how about defending themselves from illegal discrimination. They've had practice.
What they don't have is backup from the CFPB. https://www.consumerfinance.gov/about-us/blog/bureau-taking-action-build-more-inclusive-financial-system/
@SenatorMenendez asked why CFPB tells ppl to go to HUD with discrimination cmplts but not the CFPB. Director said FHA is dft from ECOA. Right, we know: CFPB has authority to enforce ECOA fair lending violations. https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/
CFPB, do the right thing.
Stop accepting a dual financial system, that leaves 2/3 of Blacks struggling to pay their bills, paying more for every kind of credit, stuck in debt traps.
You are better than this.
Stop accepting a dual financial system, that leaves 2/3 of Blacks struggling to pay their bills, paying more for every kind of credit, stuck in debt traps.
You are better than this.
