Consumer Financial Protection Bureau Director Rohit Chopra, in his first report to Congress, answered for decisions made by his predecessor, and provided some indication of his priorities going forward.
Lawmakers questioned Chopra on the postponement of the qualified mortgage rule and how he is prioritizing enforcement areas. Top of mind for Chopra is mortgage servicing, monitoring the mortgage market, and making sure “firms can’t dodge fair lending laws and anti-discrimination laws under the guise of their secret algorithm,” he said.
“I am very worried about black-box algorithms that have no accountability for how decisions are made,” Chopra told the House Financial Services Committee.
It’s not clear exactly how Chopra’s concerns over algorithmic transparency will factor into heightened supervisory and enforcement activity in the mortgage industry.