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THE GOOD FIGHT: Paul John, executive director of the Georgia Independent Automobile Dealers Association, discusses how the association fought against state legislation that would have raised the taxes on used-car purchases.

CFPB Issues Support to Alternative Data Provider

CFPB Issues Support to Alternative Data Provider Featured

The Consumer Financial Protection Bureau issues its first-ever no-action to Upstart, a company that uses non-traditional or alternative data and modeling techniques in lending decision-making.
Under the terms of the no-action letter, Upstart has agreed to a number of conditions designed to mitigate risk to consumers. The no-action letter signifies that bureau staff have no present intent to recommend initiation of supervisory or enforcement action against Upstart with respect to the Equal Credit Opportunity Act.
The letter applies to Upstart’s model for underwriting and pricing applicants as described in the company’s application materials . This no-action letter is specific to the facts and circumstances of Upstart and does not serve as an endorsement of the use of any particular variables or modeling techniques in credit underwriting.
As a condition of the no-action letter, Upstart will regularly report lending and compliance information to the CFPB to mitigate risk to consumers and aid the bureau’s understanding of the real-world impact of alternative data and modeling techniques on lending decision-making.

Last modified on Monday, 18 September 2017 22:31
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Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money

Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money

The owners of a buy-here, pay-here operation in Louisiana recently pleaded guilty to laundering money for drug dealers.William Paul Boyter, Michael Paul Boyter and Anthony Reuben Riley, all of Shreveport,...

Auto Finance Tops $1 Trillion

Auto Finance Tops $1 Trillion

The total balance of open automotive loans climbed 11.1 percent in the first qua...

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