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CFPB’s proxy methodology for detecting discrimination comes under fire
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Legislation
Tuesday, October 6, 2015
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Consumer Financial Protection Bureau Director Richard Cordray appeared before the House Financial Service Committee to discuss the bureau’s semi-annual report. Cordray fielded questions about the bureau’s proxy methodology for measuring disparate impact in indirect auto lending. There have been reports that the method is leading to an overestimation of discrimination on the basis of race and national origin.
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