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Congress Urged to Give Clarity on Alternative Data in Lending

July 25, 2019, 4:50 PM

House lawmakers are exploring how to encourage banks and fintech companies to use alternative credit scoring data such as rent or utility payments in lending decisions.

A big step would be to require the Consumer Financial Protection Bureau and other financial regulators to specify the types of alternative data that can and can’t be used in loan underwriting, Lawrance Evans, managing director of Financial Markets and Community Investment at the Government Accountability Office, said during a July 25 House Financial Services Committee fintech task force hearing.

Companies would benefit from coordinated guidance from the Federal Reserve, Office of the Comptroller ...