[Congressional Record Volume 164, Number 75 (Wednesday, May 9, 2018)]
[Extensions of Remarks]
[Page E614]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          PERSONAL EXPLANATION

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                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                         Wednesday, May 9, 2018

  Ms. McCOLLUM. Mr. Speaker, I missed the vote on May 8, 2018 to 
disapprove of the guidance issued by Consumer Financial Protection 
Bureau (CFPB) regarding indirect auto lending and compliance with the 
Equal Credit Opportunity Act (ECOA). Had I been present, I would have 
voted no on this joint resolution.
  I strongly support the CFPB's 2013 guidance, which prevents indirect 
auto lenders from discriminating against minorities in offering credit, 
a practice the CFPB determined was occurring. In fact, a January, 2018 
study from the National Fair Housing Alliance (NFHA) reveals just how 
widespread this discrimination in auto lending still is. The NFHA study 
found that over the life of a loan, minority borrowers pay an average 
of $2,662 more than white borrowers, and minority borrowers are 
consistently offered less loan financing options than white borrowers. 
As a Member of Congress who represents a number of diverse and vibrant 
minority communities, including the historic Rondo Neighborhood, I find 
these discriminatory practices repugnant. Reversing course on the 
CFPB's auto lending guidance would undermine their ability to enforce 
the ECOA and open up minority communities to further discrimination 
from indirect auto lenders.
  Additionally, I strongly disagree with the use of the Congressional 
Review Act (CRA) to overturn this guidance. Using the CRA to overturn 
guidance issued five years ago, or any agency guidance for that matter, 
is not in keeping with congressional intent and is a gross overstep of 
power.

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