Always Pay the Rent? It May Help Your Mortgage Application.

For decades, regular payments to a landlord haven’t counted for much for many tenants trying to get a mortgage. Fannie Mae aims to change that.

#banking-and-financial-institutions, #consumer-financial-protection-bureau, #content-type-service, #credit-scores, #equifax-inc, #federal-home-loan-mortgage-corp-freddie-mac, #federal-housing-finance-agency, #federal-national-mortgage-assn-fannie-mae, #mortgages, #real-estate-and-housing-residential, #renting-and-leasing-real-estate

Fannie Mae Will Review Borrowers’ Rental Payment History

For decades, regular payments to a landlord haven’t counted for much for many tenants trying to get a mortgage. Fannie Mae aims to change that.

#banking-and-financial-institutions, #consumer-financial-protection-bureau, #content-type-service, #credit-scores, #equifax-inc, #federal-home-loan-mortgage-corp-freddie-mac, #federal-housing-finance-agency, #federal-national-mortgage-assn-fannie-mae, #mortgages, #real-estate-and-housing-residential, #renting-and-leasing-real-estate

$10 Billion in Student Debt Erased Under Biden, but Calls Grow for More

Even without the blanket forgiveness that progressives have pushed, the administration has sped up and broadened its relief efforts before borrowers are set to resume payments in January.

#colleges-and-universities, #consumer-financial-protection-bureau, #fedloan-servicing, #for-profit-schools, #national-consumer-law-center, #personal-finances, #student-loans, #united-states-politics-and-government

Your Finances Took a Hit From the Pandemic. Here’s What You Do Now.

Find someone wiser than you, check your credit report and taxes, and stop catastrophizing. This is how you can do it.

#anderson-stephen-lee, #consumer-financial-protection-bureau, #content-type-service, #credit-scores, #finances, #labor-and-jobs, #personal-finances, #retirement, #unemployment

RSA spins off fraud and risk intelligence unit as Outseer

RSA Security has spun out its fraud and risk intelligence business into a standalone company called Outseer that will double down on payment security tools amid an “unprecedented” rise in fraudulent transactions.

Led by CEO Reed Taussig, who was appointed head of RSA’s Anti-Fraud Business Unit last year after previously serving as CEO of ThreatMetrix, the new company will focus solely on fraud detection and management and payments authentication services.

Outseer will continue to operate under the RSA umbrella and will inherit three core services, which are already used by more than 6,000 financial institutions, from the company: Outseer Fraud Manager (formerly RSA Adaptive Authentication), a risk-based account monitoring service; 3-D Secure (formerly Adaptive Authentication for eCommerce), a card-not-present and digital payment authentication mapping service; and FraudAction, which detects and takes down phishing sites, dodgy apps and fraudulent social media pages.

Outseer says its product portfolio is supported by deep investments in data and science, including a global network of verified fraud and transaction data, and a risk engine that the company claims delivers 95% fraud detection rates.

Commenting on the spinout, Taussig said: “Outseer is the culmination of decades of science-driven innovation in anti-fraud and payments authentication solutions. As the digital economy continues to deepen, the Outseer mission to liberate the world from transactional fraud is essential. Our role as a revenue enabler for the global economy will only strengthen as every digital business continues to scale.”

RSA, meanwhile, will continue to focus on integrated risk management and security products, including Archer for risk management, NetWitness for threat detection and response, and SecureID for identity and access management (IAM) capabilities.

The spinout comes less than a year after private equity firm Symphony Technology Group (STG), which recently bought FireEye’s product business for $1.2 billion, acquired RSA Security from Dell Technologies for more than $2 billion. Dell had previously acquired RSA as part of its purchase of EMC in 2016.

It also comes amid a huge rise in online fraud fueled by the COVID-19 pandemic. The Federal Trade Commission said in March that more than 217,000 Americans had filed a coronavirus-related fraud report since January 2020, with losses to COVID-linked fraud totaling $382 million. Similarly, the Consumer Financial Protection Bureau fielded 542,300 fraud complaints in 2020, a 54% increase over 2019.

RSA said that with the COVID-19 pandemic having fueled “unprecedented” growth in fraudulent transactions, Outseer will focus its innovation on payments authentication, mapping to the EMV 3-D Secure 2.x payment standard, and incorporating new technology integrations across the payments and commerce ecosystem. 

“Outseer’s reason for being isn’t just focused on eliminating payments and account fraud,” Taussig added. “These fraudulent transactions are often the pretext for more sinister drug and human trafficking, terrorism, and other nefarious behavior. Outseer has the ability to help make the world a safer place.”

Valuation information for Outseer was not disclosed, nor were headcount figures mentioned in the spinout announcement. Outseer didn’t immediately respond to TechCrunch’s request for more information. 

#3-d, #access-management, #articles, #ceo, #consumer-financial-protection-bureau, #crime, #deception, #e-commerce, #emc, #emv, #federal-trade-commission, #fireeye, #fraud, #head, #identity-theft, #online-fraud, #payments, #phishing, #risk-management, #rsa-security, #security, #symphony-technology-group, #threatmetrix

To ensure inclusivity, the Biden administration must double down on AI development initiatives

The National Security Commission on Artificial Intelligence (NSCAI) issued a report last month delivering an uncomfortable public message: America is not prepared to defend or compete in the AI era. It leads to two key questions that demand our immediate response: Will the U.S. continue to be a global superpower if it falls behind in AI development and deployment? And what can we do to change this trajectory?

Left unchecked, seemingly neutral artificial intelligence (AI) tools can and will perpetuate inequalities and, in effect, automate discrimination. Tech-enabled harms have already surfaced in credit decisions, health care services, and advertising.

To prevent this recurrence and growth at scale, the Biden administration must clarify current laws pertaining to AI and machine learning models — both in terms of how we will evaluate use by private actors and how we will govern AI usage within our government systems.

The administration has put a strong foot forward, from key appointments in the tech space to issuing an Executive Order on the first day in office that established an Equitable Data Working Group. This has comforted skeptics concerned both about the U.S. commitment to AI development and to ensuring equity in the digital space.

But that will be fleeting unless the administration shows strong resolve in making AI funding a reality and establishing leaders and structures necessary to safeguard its development and use.

Need for clarity on priorities

There has been a seismic shift at the federal level in AI policy and in stated commitments to equality in tech. A number of high profile appointments by the Biden administration — from Dr. Alondra Nelson as Deputy of OSTP, to Tim Wu at the NEC, to (our former senior advisor) Kurt Campbell at the NSC — signal that significant attention will be paid to inclusive AI development by experts on the inside.

The NSCAI final report includes recommendations that could prove critical to enabling better foundations for inclusive AI development, such as creating new talent pipelines through a U.S. Digital Service Academy to train current and future employees.

The report also recommends establishing a new Technology Competitiveness Council led by the Vice President. This could prove essential in ensuring that the nation’s commitment to AI leadership remains a priority at the highest levels. It makes good sense to have the administration’s leadership on AI spearheaded by VP Harris in light of her strategic partnership with the President, her tech policy savvy and her focus on civil rights.

The U.S. needs to lead by example

We know AI is powerful in its ability to create efficiencies, such as plowing through thousands of resumes to identify potentially suitable candidates. But it can also scale discrimination, such as the Amazon hiring tool that prioritized male candidates or “digital redlining” of credit based on race.

The Biden administration should issue an Executive Order (EO) to agencies inviting ideation on ways AI can improve government operations. The EO should also mandate checks on AI used by the USG to ensure it’s not spreading discriminatory outcomes unintentionally.

For instance, there must be a routine schedule in place where AI systems are evaluated to ensure embedded, harmful biases are not resulting in recommendations that are discriminatory or inconsistent with our democratic, inclusive values — and reevaluated routinely given that AI is constantly iterating and learning new patterns.

Putting a responsible AI governance system in place is particularly critical in the U.S. Government, which is required to offer due process protection when denying certain benefits. For instance, when AI is used to determine allocation of Medicaid benefits, and such benefits are modified or denied based on an algorithm, the government must be able to explain that outcome, aptly termed technological due process.

If decisions are delegated to automated systems without explainability, guidelines and human oversight, we find ourselves in the untenable situation where this basic constitutional right is being denied.

Likewise, the administration has immense power to ensure that AI safeguards by key corporate players are in place through its procurement power. Federal contract spending was expected to exceed $600 billion in fiscal 2020, even before including pandemic economic stimulus funds. The USG could effectuate tremendous impact by issuing a checklist for federal procurement of AI systems — this would ensure the government’s process is both rigorous and universally applied, including relevant civil rights considerations.

Protection from discrimination stemming from AI systems

The government holds another powerful lever to protect us from AI harms: its investigative and prosecutorial authority. An Executive Order instructing agencies to clarify applicability of current laws and regulations (e.g., ADA, Fair Housing, Fair Lending, Civil Rights Act, etc.) when determinations are reliant on AI-powered systems could result in a global reckoning. Companies operating in the U.S. would have unquestionable motivation to check their AI systems for harms against protected classes.

Low-income individuals are disproportionately vulnerable to many of the negative effects of AI. This is especially apparent with regard to credit and loan creation, because they are less likely to have access to traditional financial products or the ability to obtain high scores based on traditional frameworks. This then becomes the data used to create AI systems that automate such decisions.

The Consumer Finance Protection Bureau (CFPB) can play a pivotal role in holding financial institutions accountable for discriminatory lending processes that result from reliance on discriminatory AI systems. The mandate of an EO would be a forcing function for statements on how AI-enabled systems will be evaluated, putting companies on notice and better protecting the public with clear expectations on AI use.

There is a clear path to liability when an individual acts in a discriminatory way and a due process violation when a public benefit is denied arbitrarily, without explanation. Theoretically, these liabilities and rights would transfer with ease when an AI system is involved, but a review of agency action and legal precedent (or rather, the lack thereof) indicates otherwise.

The administration is off to a good start, such as rolling back a proposed HUD rule that would have made legal challenges against discriminatory AI essentially unattainable. Next, federal agencies with investigative or prosecutorial authority should clarify which AI practices would fall under their review and current laws would be applicable — for instance, HUD for illegal housing discrimination; CFPB on AI used in credit lending; and the Department of Labor on AI used in determinations made in hiring, evaluations and terminations.

Such action would have the added benefit of establishing a useful precedent for plaintiff actions in complaints.

The Biden administration has taken encouraging first steps signaling its intent to ensure inclusive, less discriminatory AI. However, it must put its own house in order by directing that federal agencies require the development, acquisition and use of AI — internally and by those it does business with — is done in a manner that protects privacy, civil rights, civil liberties, and American values.

#artificial-intelligence, #biden-administration, #column, #consumer-financial-protection-bureau, #department-of-labor, #government, #machine-learning, #opinion, #policy, #united-states

A Novel Way to Finance School May Penalize Students from HBCU’s, Study Finds

Income-share agreements are gaining popularity, but a new analysis highlights how calculations of what borrowers owe can disadvantage minorities.

#black-people, #chopra-rohit, #colleges-and-universities, #consumer-behavior, #consumer-financial-protection-bureau, #consumer-protection, #frotman-seth, #income-inequality, #national-assn-for-the-advancement-of-colored-people, #student-loans

A Year After Ending Her Presidential Bid, Warren Wields Soft Power in Washington

The progressive Democrat’s proposals for taxing the rich will take center stage as talks on paying for an infrastructure bill ramp up.

#adeyemo-adewale, #biden-joseph-r-jr, #chopra-rohit, #consumer-financial-protection-bureau, #content-type-personal-profile, #democratic-party, #federal-taxes-us, #financial-stability-oversight-council, #income-tax, #united-states, #united-states-economy, #united-states-politics-and-government, #warren-elizabeth

How to Tame the Presidency After Trump

Congress needs to find creative ways to engage the executive branch that favor cooperation over conflict.

#biden-joseph-r-jr, #constitution-us, #consumer-financial-protection-bureau, #house-of-representatives, #inspectors-general, #kagan-elena, #law-and-legislation, #supreme-court-us, #trump-donald-j, #war-and-emergency-powers-us

Biden’s Picks for Financial Regulator Jobs Emphasize Transparency and Fairness

Nominees to lead the Securities and Exchange Commission and the Consumer Financial Protection Bureau faced questions about the limits of their power but said they wouldn’t shy from flexing it.

#banking-and-financial-institutions, #chopra-rohit, #consumer-financial-protection-bureau, #consumer-protection, #gensler-gary-s, #regulation-and-deregulation-of-industry, #securities-and-exchange-commission, #senate-committee-on-banking, #stocks-and-bonds, #united-states-politics-and-government

More Consumers Complain About Errors on Their Credit Reports

Complaints doubled last year, federal data shows. Some problems may be related to pauses in mortgage and student loan payments in the pandemic.

#consumer-financial-protection-bureau, #consumer-protection, #content-type-service, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-scores, #equifax-inc, #experian-plc, #fair-isaac-corporation, #mortgages, #student-loans, #transunion-llc

It’s ‘Debt Parking’: When Fake Debts End Up on Your Credit Report

The F.T.C. recently took its first legal action to stop the fraud. Consumers may not know the debts are on their reports until they apply for a loan.

#consumer-financial-protection-bureau, #consumer-protection, #content-type-service, #credit-scores, #debt-collection, #equifax-inc, #experian-plc, #federal-trade-commission, #frauds-and-swindling, #personal-finances, #transunion-llc

Biden Pick for Deputy Treasury Secretary Breaks Racial Barrier

Adewale Adeyemo’s role in the Trans-Pacific Partnership negotiations and work at BlackRock could complicate his confirmation hearings.

#adeyemo-adewale, #appointments-and-executive-changes, #biden-joseph-r-jr, #blackrock-inc, #consumer-financial-protection-bureau, #obama-foundation, #regulation-and-deregulation-of-industry, #treasury-department, #united-states-politics-and-government

Biden’s Transition Teams Suggest Tougher Wall Street Oversight

The president-elect has chosen proponents of stronger regulation to begin reviewing financial agencies.

#banking-and-financial-institutions, #consumer-financial-protection-bureau, #consumer-protection, #dodd-frank-wall-street-reform-and-consumer-protection-act-2010, #english-leandra, #federal-deposit-insurance-corp, #federal-reserve-system, #gensler-gary-s, #kelleher-dennis-m, #presidential-transition-us, #regulation-and-deregulation-of-industry, #securities-and-exchange-commission, #shelton-judy, #united-states-economy, #waller-christopher-1959

In a Divided Washington, Biden Could Still Exert Economic Power

If Republicans control the Senate, a Biden administration could take a cue from President Trump and find ways to act unilaterally on some economic issues.

#biden-joseph-r-jr, #consumer-financial-protection-bureau, #cordray-richard, #coronavirus-aid-relief-and-economic-security-act-2020, #corporate-taxes, #federal-reserve-system, #federal-taxes-us, #international-trade-and-world-market, #kraninger-kathy, #minimum-wage, #presidential-election-of-2020, #quarles-randal-k, #regulation-and-deregulation-of-industry, #stimulus-economic, #student-loans, #tiktok-bytedance, #trump-donald-j, #united-states-economy, #united-states-politics-and-government, #wechat-mobile-app

How the White House Rolled Back Financial Regulations

Under President Trump, agencies have eased bans on Wall Street risk-taking and loosened consumer protections and anti-discrimination laws.

#banking-and-financial-institutions, #community-reinvestment-act, #consumer-financial-protection-bureau, #consumer-protection, #debt-collection, #discrimination, #dodd-frank-wall-street-reform-and-consumer-protection-act-2010, #federal-reserve-system, #quarles-randal-k, #regulation-and-deregulation-of-industry, #trump-donald-j, #united-states-politics-and-government

Help! My Travel Agency Shut Down and I’m Out $2,000

Our columnist investigates whether there is any recourse for a canceled flight booked through STA Travel, which filed for bankruptcy in August.

#airlines-and-airplanes, #bankruptcies, #british-airways-plc, #consumer-financial-protection-bureau, #consumer-protection, #credit-cards, #quarantine-life-and-culture, #travel-agencies-and-agents, #travel-and-vacations

ITT Tech Students Will Get $330 Million in Loan Relief

Borrowers have defaulted in overwhelming rates on loans that were sometimes fraudulently signed without their knowledge by ITT employees, government prosecutors said.

#consumer-financial-protection-bureau, #credit-and-debt, #deutsche-bank-ag, #education-department-us, #itt-technical-institute, #student-loans

Conservatives, Don’t Give Up on Your Principles or the Supreme Court

Some are turning away from a founding idea, originalism.

#constitution-us, #consumer-financial-protection-bureau, #gorsuch-neil-m, #kavanaugh-brett-m, #roberts-john-g-jr, #supreme-court-us, #united-states-politics-and-government

Consumer Bureau Scraps Restrictions on Payday Loans

Lenders spent years battling planned new rules that they said would gut a short-term lending market that often leaves borrowers trapped in debt.

#consumer-financial-protection-bureau, #consumer-protection, #kraninger-kathy, #lobbying-and-lobbyists, #payday-loans, #regulation-and-deregulation-of-industry, #trump-donald-j

This Is the Real John Roberts

He is a judicial minimalist who seeks to avoid sweeping decisions with disruptive effects.

#constitution-us, #consumer-financial-protection-bureau, #law-and-legislation, #roberts-john-g-jr, #supreme-court-us, #trump-donald-j, #united-states, #voting-rights-act-1965

Supreme Court Lifts Limits on Trump’s Power to Fire Consumer Watchdog

The case concerning the Consumer Financial Protection Bureau was part of a politically charged battle over presidential authority.

#appointments-and-executive-changes, #consumer-financial-protection-bureau, #dodd-frank-wall-street-reform-and-consumer-protection-act-2010, #supreme-court-us, #united-states-politics-and-government

How Automated Background Checks Freeze Out Renters

Algorithms that scan everything from terror watch lists to eviction records spit out flawed tenant screening reports. And almost nobody is watching.

#affordable-housing, #consumer-financial-protection-bureau, #consumer-protection, #corelogic-inc, #credit-scores, #data-mining-and-database-marketing, #landlords, #real-estate-and-housing-residential, #regulation-and-deregulation-of-industry, #renting-and-leasing-real-estate, #transunion-llc

Trump Appointees Manipulated Agency’s Payday Lending Research, Ex-Staffer Claims

A former economist at the Consumer Financial Protection Bureau accused Trump appointees of steering the bureau’s reversal on payday lending rules to gut a key provision.

#consumer-financial-protection-bureau, #consumer-protection, #credit-and-debt, #house-committee-on-financial-services, #jonathan-lanning, #kraninger-kathy, #mulvaney-mick, #payday-loans, #regulation-and-deregulation-of-industry, #trump-donald-j, #united-states-politics-and-government