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Abstract: 

In the post Dodd-Frank lending environment, lenders now not only have a new regulatory enforcement agency, the Consumer Financial Protection Bureau (CFPB), to contend with, but find that the “old guard” agencies have been increasingly aggressive in their own fair-lending enforcement efforts. Given the vague and open-ended nature of some of the applicable laws, the level of lenders’ alarm is all the more acute. In this article, the author focuses on two key subject areas for enforcement: “fair lending” laws and unfair, deceptive, or abusive acts and practices (UDAAP). He first addresses the evolving definitions of fair lending and UDAAP, the impact of the CFPB on these areas, and recent litigation developments, and then suggests compliance strategies that can help companies to minimize the risks of potential violations.

Keywords: unfair, deceptive, or abusive acts and practices; UDAAP; Consumer Financial Protection Bureau; CFPB; fair lending; disparate impact; mortgages

Affiliations:  1: Bilzin Sumberg.