Fair Lending Report of the Consumer Financial Protection Bureau 2024
This report satisfies three statutorily imposed reporting requirements related to the Consumer Financial Protection Bureau (CFPB)’s fair lending program under 12 U.S.C. § 5493(c)(2)(D); 15 U.S.C. § 1691f; and 12 U.S.C. § 2807 and reflects the priorities and work of the CFPB and sister agencies for calendar year 2024.
Since that time, the agency’s fair lending work has shifted significantly to better align with the current administration’s priorities, guided by several executive orders, including: Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy;” Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity;” and Executive Order 14331, “Guaranteeing Fair Banking for all Americans.”
In furtherance of the objectives set out by Executive Order 14281, the CFPB will no longer use disparate impact in its supervision or enforcement of fair lending laws. To that end, the Bureau has closed all elements of open exams and investigations that relied on disparate impact liability. The Bureau also terminated CFPB orders that relied on disparate impact liability. Going forward, the CFPB is focusing its fair lending supervisory and enforcement resources on matters with direct evidence of intentional racial discrimination and identified victims.
Executive Order 14173 obligates executive departments and agencies “to terminate all discriminatory and illegal preferences” and “to combat illegal private sector” race- and sex-conscious programs. Accordingly, to comply with Executive Order 14173, the CFPB will no longer consult with financial institutions regarding special purpose credit programs that rely on race, national origin, or sex.
Finally, CFPB leadership has dedicated resources across the Bureau to implement the President’s Executive Order 14331 on debanking, a key priority of the Bureau.
In 2025 and beyond, the CFPB will be working only on areas clearly within its statutory authority, prioritizing pressing threats to consumers, focusing on actual fraud against consumers, where there are identifiable victims with material and measurable consumer damages, and redressing tangible harm by getting money back directly to consumers. The CFPB has a strong focus on protecting and providing redress to service members and their families, and veterans.