Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Thursday, February 16, 2017

CFPB RFI: Impact of Alternative Data on Credit Access

The CFPB has launched an inquiry into ways to expand access to credit for consumers who are credit invisible or who lack enough credit history to obtain a credit score. The Bureau is seeking public feedback on the benefits and risks of tapping alternative data sources such as bills for mobile phones and rent payments to make lending decisions about consumers whose lack of credit history might otherwise block opportunities. Specifically, the bureau will explore whether alternative data could improve access to credit, increase the complexity of the process, have an impact on costs and services, have privacy or security implications or unfairly impact a specific group.

Traditional credit history includes a borrower’s payment of debts such as mortgages, credit cards, and other loans. It is used by lenders to decide who can get credit and what it will cost. The bureau estimates that 26 million Americans are credit invisible, which means they have no credit history with a nationwide consumer reporting agency. An additional 19 million lack sufficient credit history to produce a credit score under most scoring models.

Read more.

1 comment:

Richard C. Lambert said...

The information you have posted is very useful. The sites you have referred was good. Thanks for sharing.
Company Formation Singapore

Post a Comment

Please read our comment policy before making a comment.