The Consumer Financial Protection Bureau (CFPB) has opened a comment period for information on alternative credit data. The CFPB issued the request for information (RFI) on February 16 and the comment period is open until May 19. Responses to the RFI can be found here.
The CFPB, established by the Dodd-Frank Wall Street Reform Act and led by Director Richard Cordray, is interested in obtaining information on the currently available sources of alternative credit data in the market and alternative credit data underwriting models being used by fintech innovators.
The CFPB’s RFI follows an increasingly emerging financial inclusion trend in fintech. The market has seen a number of new companies seeking to make credit more accessible for thin file borrowers. Meanwhile, innovation around alternative credit data is also surfacing. The CFPB seems to be taking an active role in this emerging trend and will likely publish a comprehensive report on its findings and perspective following the comment period. Source