Under the current administration, the priorities of the Consumer Financial Protection Bureau (CFPB) have shifted dramatically, with a reduced focus on redlining.
The CFPB has discarded the statistically based analyses that were key to investigating and uncovering systematic patterns. While institutions may find the redlining burden reduced, they can still utilize the community credit needs assessment (CCNA) to strategically understand how they compare to their peers.
In this Insights, the authors provide an overview of the CCNA and how it can provide useful strategic information to lenders. Information such as the financial institution’s current or past application and origination activity and economic indicators like homeownership rates, unemployment rates, vacancy and foreclosure rates, etc.
