b'Auto LoanOrigination & ServicingIn 2021, Goodwin tracked 10 publicly announced autoactions in this space is the fewest number of such lending enforcement actions, down from 11 such actionsactions since Goodwin began tracking these numbers tracked in 2020. 2021 saw a decline in the number ofin 2015.such actions announced by states. Only four of the 10 publicly announced actions were brought by states, whereas in 2020 there were six such actions. The total2021 Highlights amount recovered by enforcement agencies this yearNew York DFS Settles with Two State Banks Over was approximately $35.2 million dollarsa fraction ofAlleged Discrimination in Auto Lendingthe amount recovered in 2020 ($562 million), but moreIn June, the New York Department of Financial Services in line with the amounts historically recovered by federal(DFS) entered into two separate consent orders with and state agencies for actions in this space.New York-based Adirondack Trust Company (here) and New York-based Chemung Canal Trust Company Key Trends(here), resolving allegations that the banks had violated New York fair lending laws in their indirect auto lending Unlike 2020, where the DOJ initiated no new publiclypractices. Specifically, the DFS alleged that the banks announced enforcement actions in the auto lendingpractices resulted in minority borrowers paying higher space, 2021 saw the DOJ file two new auto financeinterest rates for their automobile loans than non-enforcement actions. In both instances, the DOJHispanic white borrowers, and that the banks failed alleged claims under the Servicemembers Civil Reliefto monitor auto dealers that were charging members Act (SCRA) arising from auto lenders alleged refusal toof protected classes more in discretionary dealer terminate lease agreements and refund prepaid leasemarkups. To resolve these allegations, Adirondack Trust amounts after the consumer entered military service oragreed to pay a $275,000 civil money penalty to the received orders to deploy. State of New York, in addition to restitution to impacted The CFPB, in contrast, took a step back from theconsumers, and Chemung Canal Trust agreed to pay enforcement space this year. In 2020, the CFPB publiclya $350,000 civil money penalty and restitution to announced four actions related to auto finance, but lastimpacted consumers. year the CFPB announced only a single such action.DOJ Secures Consent Order with SantanderThat action, discussed in more detail below, arose fromand American Honda Finance Over Allegeda California auto finance companies failing to discloseSCRA Violationsto consumers that it would charge interest on lateDOJ publicly announced two new auto finance payments of loss damage waiver fees.enforcement actions in 2021, both of which concerned States no longer played the predominant enforcementallegations that the auto finance companies had role in the auto lending space in 2021. State attorneysviolated the rights of servicemembers under the SCRA. general and enforcement agencies announced onlyIn September, the DOJ announced that American two new enforcement actions in 2021, compared toHonda Finance Corporation had entered into a consent the six enforcement actions announced in 2020. It isorder under which it agreed to pay up to $1.59 million too soon to tell whether this decline is the result ofin compensation to servicemembers in order to resolve the perception that federal enforcement agencies willallegations that it had violated the SCRA. The SCRA take a more active enforcement role under the Bidenauthorizes servicemembers to terminate auto leases early administration, causing the states to allocate theirin the event that the servicemember enters active military resources elsewhere, or whether this decline is anservice or receives orders to deploy after executing anomaly. However, the two publicly announced state 50'