b'Looking Ahead to 2022:Both fair lending and loan servicing are likely to be theClosely watch so-called digital redlining subject of increased federal scrutiny in 2022. Shortly after his confirmation, Director Chopra made public a practice where institutions use remarks signaling fair lending, and specifically issuessupposedly neutral algorithms, which such as redlining, will be a focus for the CFPB under his leadership. Director Chopra noted the CFPB will pursueend up recognizing and then reinforcing bad actors, but also closely watch so-called digitalprevious biases or disparities.redlininga practice where institutions use suppos-edly neutral algorithms, which end up recognizing and then reinforcing previous biases or disparities.Key personnel appointments at the CFPB and HUDWhat to Watchfurther indicate that fair lending is likely to be a CFPB and HUD priority. At the CFPB, former DOJ civil rightsFair lending investigations and actions brought by attorney, Eric Halperin, was appointed as assistantfederal regulators partnering with U.S. Attorneys director of the CFPBs office of enforcement in October.Offices and/or state attorneys general andHalperin previously worked in DOJs Civil Rights Division and oversaw fair housing and fair lendingExaminations, investigations, and enforcement matters, and was a special counsel for fair lending.actions related to mortgage servicers compliance Additionally, the CFPBs former Acting Director Davidwith RESPA and Reg. X as post-forbearance Uejio has been nominated to serve as HUDs Assistantpayment and loss mitigation options continue to Secretary of Housing and Urban Development for Fairbe implemented and federal watchdogs return to Housing and Equal Opportunityan assignment thatenforcement of critical protections for borrowers.may be intended to increase HUDs supervision and enforcement of fair lending laws. For mortgage servicers, the recent expiration of COVID-19 forbearances coupled with the CFPBs stated intent to enforce the newly promulgated amendments to Regulation X will likely lead to future enforcement ac-tions in this space as servicers are tasked with figuring out how to apply newly promulgated rules in real-time while millions of forbearance periods expire and begin stress-testing existing loss-mitigation procedures. Servicers may also find themselves facing (or avoiding) litigation over their CARES Act processes, as well law-suits over their modification processes.18'