LAS VEGAS – The National Automobile Dealer Association said the CFPB is inaccurately identifying discriminatory lending practices at auto dealerships. The group offered its own solution for lenders and dealers looking to defend their lending decisions during a breakout panel session at the Drive '15: CU Direct Lending & Marketing Conference Wednesday in Las Vegas.
Andy Koblenz, vice president and general counsel for NADA, and Paul Metrey, chief regulatory counsel for NADA, explained that since it's illegal to collect race-related information on borrowers in the auto lending space, the CFPB gathers that information using a flawed, proxy analysis technique that involves comparing the races associated with borrowers' last names and places of residence against information provided on mortgage loan applications.
"The CFPB's own white paper on its proxy method contains information that demonstrates it is highly problematic," Metrey said. "They run their best guess, based on last name and residence, against a group of mortgage applicants who self-identified their race."
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
