Christopher J. Willis

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Treatment of models under HUD’s proposed disparate impact rule: our thoughts

By Christopher J. Willis on August 19, 2019

In its proposed disparate impact rule published in today’s Federal Register, HUD sets forth a framework for making (and defending against) claims of disparate impact under the Fair Housing Act. In this blog post, we take a closer look at a new and unique aspect of the proposed rule: its treatment of mathematical models (like risk-scoring models used in the credit industry). In proposed section 100.500(c)(2), HUD provides three avenues of defense when a disparate impact…

Consumer Finance Monitor

Seventh Circuit FDCPA decision has implications for CFPB’s approach to validation notices in its proposed debt collection rules

By Christopher J. Willis on August 14, 2019

In its proposed debt collection rules, the CFPB would allow a debt collector to satisfy the FDCPA requirement to provide the validation notice by sending the debtor an email or text message that includes a hyperlink to a secure website on which the notice is accessible, subject to a series of specific conditions set forth in the proposed rules. The permissibility of that approach under the FDCPA was called into question by the decision issued…

Consumer Finance Monitor

CFPB gives boost to use of alternative data and machine learning

By Christopher J. Willis & John L. Culhane, Jr. on August 8, 2019

A new CFPB blog post titled “An update on credit access and the Bureau’s first No-Action Letter” provides a boost to lenders using alternative data and machine learning in their underwriting models. The Bureau issued its first (and so far only) no-action letter in September 2017 to Upstart Network Inc. stating that the CFPB had no present intention to take enforcement or supervisory action against the lender under the ECOA relating to the…

Consumer Finance Monitor

Proposed changes to HUD disparate impact rule would create new burden-shifting framework to reflect Inclusive Communities

By Richard J. Andreano, Jr. & Christopher J. Willis on August 5, 2019

The Department of Housing and Urban Development is expected to soon release proposed revisions to its 2013 rule under which HUD or a private plaintiff can establish liability under the Fair Housing Act (FHA) for discriminatory practices based on disparate impact even if there is no discriminatory intent (Rule). The proposal has been submitted to Congress for review pursuant to the Congressional Review Act. Comments on the proposal will be due on or before 60…

Consumer Finance Monitor

New York Department of Financial Services opens investigation into Facebook advertisers

By Christopher J. Willis on July 8, 2019

Only a few months have passed since the U.S. Department of Housing and Urban Development filed a charge of discrimination against Facebook, alleging that the ad-targeting techniques used to determine which users would see advertising related to housing and housing-related service (like mortgage loans) were based on protected characteristics and “close proxies” for those characteristics, violating the Fair Housing Act. Now, the New York Department of Financial Services has opened a similar investigation,…

Consumer Finance Monitor

The CFPB’s latest meaningful attorney involvement lawsuit sends some strange messages

By Christopher J. Willis on May 20, 2019

Last Friday, the CFPB announced that it had filed yet another meaningful attorney involvement lawsuit against a debt collection law firm – Forster & Garbus, P.C. It’s notable enough that the Bureau continues to pursue these cases (even while proposing a “safe harbor” for meaningful attorney involvement in its proposed debt collection rules), but there are a number of very notable – and troubling – things about this particular case. The primary thrust of the…

Consumer Finance Monitor

Meaningful attorney involvement: the CFPB’s proposed “safe harbor” standard

By Christopher J. Willis on May 15, 2019

As part of our continuing discussion of the CFPB’s proposed debt collection rules, we focus in this blog post on a provision that occupies very little real estate in the proposal, but could have tremendous significance: a new “safe harbor” provision relating to meaningful attorney involvement by debt collection law firms, contained in section 1006.18(g) of the proposed rules. Now, you have seen the concept of meaningful attorney involvement play a prominent role in CFPB…

Consumer Finance Monitor

Why creditors and servicers should care about the CFPB’s proposed debt collection rules

By Christopher J. Willis & Stefanie Jackman on May 13, 2019

The Bureau’s proposed debt collection rules, released last week, only apply to debt collectors, as defined under the Fair Debt Collection Practices Act. So, why should creditors and servicers be interested in them? Lots of reasons. First, a number of provisions call for creditors (or by extension, servicers) to take action before a debt is assigned to a collection agency in order to facilitate the collection agency’s use of electronic communications with the consumer. …

Consumer Finance Monitor

CFPB publishes debt collection proposed rule; Ballard Spahr to hold May 14 webinar

By Heather S. Klein, Stefanie Jackman, Christopher J. Willis & John L. Culhane, Jr. on May 7, 2019

The CFPB has published its long-awaited notice of proposed rulemaking under the Fair Debt Collection Practices Act (FDCPA). The proposed rule would apply only to debt collectors covered by the FDCPA, although creditors and servicers acquiring debts before default will feel its impact as well. On May 14, 2019, from 12 p.m. to 1:30 p.m. ET, Ballard Spahr attorneys will hold a webinar, “The CFPB’s New Proposed Debt Collection Rule.” The webinar registration form is …

Consumer Finance Monitor

HUD files FHA action against Facebook alleging discriminatory advertising practices

By Christopher J. Willis & Scott M. Pearson on March 29, 2019

The Department of Housing and Urban Development has issued a “Charge of Discrimination” against Facebook that charges the company “with engaging in discriminatory housing practices in violation of the [provisions of the Fair Housing Act that prohibit discrimination based on race, color, religion, sex, familial status, national origin or disability.]” HUD’s Charge (which initiates an administrative enforcement proceeding) alleges that Facebook designed its advertising platform in a way that shows advertisements for housing…

Christopher J. Willis

Treatment of models under HUD’s proposed disparate impact rule: our thoughts

Seventh Circuit FDCPA decision has implications for CFPB’s approach to validation notices in its proposed debt collection rules

CFPB gives boost to use of alternative data and machine learning

Proposed changes to HUD disparate impact rule would create new burden-shifting framework to reflect Inclusive Communities

New York Department of Financial Services opens investigation into Facebook advertisers

The CFPB’s latest meaningful attorney involvement lawsuit sends some strange messages

Meaningful attorney involvement: the CFPB’s proposed “safe harbor” standard

Why creditors and servicers should care about the CFPB’s proposed debt collection rules

CFPB publishes debt collection proposed rule; Ballard Spahr to hold May 14 webinar

HUD files FHA action against Facebook alleging discriminatory advertising practices

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