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John C. Redding quoted in American Banker article, “CFPB auto-loan crackdown crumbled long before Senate stepped in”

American Banker

John C. Redding

John C. Redding was quoted on April 30, 2018 in an American Banker article, “CFPB auto-loan crackdown crumbled long before Senate stepped in,” which discussed the 2013 auto lending guidance and the impending repeal of Obama-era missive that aims to crack down on discrimination in auto lending. The article stated, “The 2013 auto lending guidance from the Consumer Financial Protection Bureau is frequently portrayed as either an overdue crackdown on lending discrimination or a case study in regulatory overreach. As an initial step, the CFPB issued regulatory guidance in March 2013 that listed various steps that lenders could take to limit their fair-lending risk. The five-page document sparked an industry backlash — lenders saw it as a precursor to stepped-up enforcement of fair-lending laws — though the agency’s supporters maintain that it was never as consequential as critics argued. Industry lobbyists, most notably those representing auto dealers, have been pushing Congress to weaken the five-year-old auto-lending guidance since late 2015. Back when their effort began, the CFPB was still a thorn in the industry’s side. But after President Trump tabbed Republican stalwart Mick Mulvaney as acting director of the CFPB in November, auto lenders breathed a sigh of relief.”

Redding added, “I think it is unlikely that the CFPB is going to pursue fair lending in the same way that it was pursued under the Cordray administration.”

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