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The Consumer Financial Protection Bureau (CFPB) has released a report summarizing strategies for the promotion of diversity and inclusion (D&I) by mortgage industry professionals. Addressing diversity practices, such as establishing engagement from top leadership, the report comes from the CFPB’s collaboration with the financial services industry.
“The Consumer Bureau’s mission is to protect all consumers across the diverse American marketplace, just as financial institutions seek to serve them with helpful products and services,” stated CFPB Director Richard Cordray. “The insights in this report from our roundtable with mortgage lenders help to show the advantages of integrating diversity and inclusion programs in workplaces throughout the financial services industry.”
The CFPB Office of Minority and Women Inclusion’s (OMWI) roundtable was held in collaboration with the Mortgage Bankers Association (MBA), larger and smaller banks and nonbank financial companies. The meeting also included OMWI representatives from the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Federal Reserve and Federal Housing Finance Agency (FHFA).
Five Strategies and Practices
- The business case for diversity and inclusion:The roundtable participants shared that embracing diversity and inclusion made business sense for their organizations. Participants that analyzed how diversity and inclusion can strengthen organizations found that it improved overall performance and leads to a more positive and productive workplace.
- The importance of leadership buy-in and accountability:A strong theme was the importance of the “tone from the top” of the organization, without which many speakers said it is virtually impossible to sustain a successful diversity program. Strong leadership on diversity and inclusion issues aligned organizations to build in diversity and inclusion as fundamental principles.
- Recruiting, hiring, inclusion, retention, advancement, and engagement:Participants shared that principles of inclusion are vital in developing and sustaining a diverse workforce over time. Organizations noted that they sought to boost retention levels and advancement prospects of people with different backgrounds and viewpoints. Another goal reported by participants is to make sure that discussions and decisions within the organization reflect the more robust analysis and broader understanding that can result from multiple viewpoints.
- Broadening the customer base with new business products:Participants explained that a more diverse workforce fosters greater understanding of the particular needs and situations of a more diverse customer base, including tailoring products to the needs of different consumers. Participants saw this as a key approach to attracting and satisfying a broader base of customers.
- The importance of data: Data collection and analysis play an integral role in supporting many of the participating organizations’ business cases for diversity. Some participants noted that understanding the demographics of an organization’s workforce is key to ensuring that it reflects the available talent pools and remains competitive and effective.
To view the CFPB’s OMWI Report, please, click here.
To view NAWRB’s recent Request for Comments (RFC) response, featuring our suggested D&I practices and strategies, please, click here.