Regulatory Alerts2019-12-12
Added · Updated
CA 19-11: Interagency Statement on the Use of Alternative Data in Credit Underwriting
The Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency issued an interagency statement regarding the use of alternative data in credit underwriting. The statement highlights the potential benefits of expanding consumer access to credit while emphasizing the associated consumer protection risks and compliance requirements. It urges supervised institutions to implement well-designed compliance management programs to thoroughly analyze relevant laws before utilizing alternative data in their underwriting processes.