On the recordMay 8, 2018
I thank Ranking Member Waters for her leadership on the floor on this issue. I rise in opposition to S.J. Res. 57 because it erases measures established a half-decade ago to prevent auto dealers from using discriminatory data tactics. I also rise because it signals the majority's intention to contort the Congressional Review Act to allow it to be used on a dramatically increased scale in ways never intended. Let me start with the policy. When auto dealers provide financing through a third-party lender, they can increase the rate offered to the consumer and pocket the difference. Evidence suggests these dealer markups are frequently higher for minority borrowers than for similarly qualified White borrowers. In 2013, the CFPB sought to address this problem. The agency produced guidance that clarified the fair lending requirements of the Equal Credit Opportunity Act applied to auto loans. The CFPB's action simply spelled out that dealer markups were indeed illegal if they led to discriminatory outcomes, intentional or otherwise. It also listed some useful steps that auto dealers could take to ensure fair lending compliance. In recent years, the CFPB has fined auto dealers more than $150 million for discriminating against minority borrowers. A resolution of disapproval is not the way to change policy in this area.…
