Recent CFPB Guidance, Industry Pressures Impetus for Training Program to Bridge Lender, Dealer Compliance Concerns
Wolters Kluwer Financial Services today launched a new comprehensive fair lending training program targeted to the automotive, recreational vehicle, marine and powersports dealer industry. Developed as a response to increased lender pressure and industry scrutiny of fair lending practices within the dealer marketplace, the training provides dealers with a comprehensive program to educate finance department personnel and equip them with fair lending standards needed to help them ensure compliance and maintain strong lender relationships.
In March, the Consumer Financial Protection Bureau published CFPB Bulletin 2013-02, Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act. Since then, the CFPB has issued subpoenas in an expansive probe into indirect auto lending practices, and the justice department is investigating auto dealers for their rate markup practices, hinting that further legal action targeting dealers directly may be on the horizon. It has prompted a great deal of analysis, discussion and concern within the network of dealers and their lender relationships.
“While dealers generally fall outside the jurisdiction of the CFPB, recent developments have made it clear the lenders they work with will not escape the scrutiny of regulatory bodies which enforce ECOA compliance. These lenders are certainly starting to exert pressure on dealers to find ways to demonstrate that they are in compliance with fair lending regulations,” says Chip Zyvoloski, senior attorney, indirect lending with Wolters Kluwer Financial Services. “Our fair lending training is designed to help dealers comply with the law, protect them from risk and at the same time provide them with a way to demonstrate ongoing compliance to their lender relationships.”
The training program educates and tests users on key fair lending regulations, and provides them with a customizable fair lending policy to use in their dealership for ongoing operational compliance. The program also provides dealers with a template to manage and track standard exceptions for demonstrating compliance with exception policies to lenders.
The National Independent Automobile Dealers Association (NIADA) has announced their endorsement of the Wolters Kluwer Financial Services fair lending training program.
“The NIADA holds extremely high standards for its endorsements and its corporate partners. Being selected as an endorsed provider of fair lending training is definitely an honor,” said Brad Fleener, senior director and general manager Indirect Lending for Wolters Kluwer Financial Services. “With deep in-house expertise in this area, our training will provide NIADA members with the information necessary to help them remain compliant as well as build and maintain stronger lender relationships in the process.”
“We are thrilled to have Wolters Kluwer as our newest endorsed NIADA National Corporate Partner and Member Training Partner. They represent a leading compliance training, documentation, software and services provider to our member dealers, helping ensure their retail operations are prepared for the ever changing and complex regulatory environment. This training opportunity is an excellent new member benefit for our dealership members,” said Scott Lilja, senior vice president, Member Services, NIADA.
Wolters Kluwer Financial Services’ Indirect Lending business monitors pending and enacted legislation that impacts the marine, RV and auto finance and dealer markets. The company’s compliance documentation, software and services help both lenders and dealers mitigate risk and ensure new laws and regulations are embedded within their business operations.