Concerns that deterioration in consumer reports and credit scores could unduly constrain access to credit and the nation’s broader economic recovery have continued to grow since we published our first research brief on this topic in May 2020. The issue is important not just for consumers in accessing credit, employment, and rental housing, but also for small businesses because lenders often consider owners’ personal information when underwriting commercial loans.
This Research Brief summarizes recent developments, including industry and regulator actions to reduce the risk of scoring declines and loan denials based on pandemic-related information, concerns about potential negative impacts on renters, and debates over how to report longer-term repayment plans. The brief also explains stakeholder calls for further action by Congress, regulators, and industry groups to bolster access to credit and pandemic recovery.
Research BriefClick here for FinRegLab’s original research brief on pandemic-related credit reporting and scoring issues published in May 2020.
Click here for an October 2020 update on the use of non-traditional data for credit scoring and underwriting in response to the pandemic recession and racial justice movements.