Making our voice heard – Upstart letters to Regulators

Below you will find comment letters from Upstart in response to proposed rules by federal regulatory agencies.

2024

Regulatory Capital Rule: Endgame III

Upstart is concerned that the proposed rule could impact both the cost and availability of credit for consumers.

2023

Upstart CEO Joins Senate’s Bipartisan AI Insight Forum In DC

Read Dave Girouard’s written statement to the Forum, which brought together the public and private sectors to discuss and build consensus on the promise of AI.

Small Business Lending Company Moratorium Rescission and Removal of the Requirement for a Loan Authorization

Upstart supports the SBA’s proposal to lift the moratorium on licensing new SBLCs and their proposal to create a new type of Mission-Based SBLC.

2022

Affiliation and Lending Criteria for the SBA Business Loan Programs

Upstart supports the SBA’s proposal to require that lenders and CDCs must use appropriate and prudent generally acceptable commercial credit analysis processes and procedures consistent with those used for their similarly-sized, non-SBA guaranteed commercial loans.

Community Reinvestment Act

Well-regulated partnerships between banks and technology companies, like Upstart, are critically important today for the financial health of consumers and banks’ ability to fulfill their obligations under the CRA. Working with Upstart helps banks do more than convert a traditional loan product into a digital offering.

2021

Proposed Interagency Guidance on Third-Party Relationships: Risk Management

Well-regulated partnerships between financial institutions and third party technology companies, like Upstart, are critically important today for the financial health of consumers and the banking system. Working with Upstart helps banks do more than convert a traditional loan product into a digital offering. Because of Upstart’s use of additional data and AI/ML techniques, the banks and credit unions that work with Upstart are able to offer loans to more consumers who might not qualify using traditional underwriting methods.

Credit Union + Fintech Partnerships to Address Dynamic & Evolving Consumer Demands

Upstart encourages the NCUA Board to support policies that promote responsible fintech partnerships with small credit unions, including allowing Credit Union Service Organizations (CUSOs) to advance and expand their lending activities to include originating any type of loan that a federal credit union is allowed to originate.

Credit Union Service Organizations (CUSOs)

Upstart supports the proposed rule to expand the list of permissible CUSO lending activities to include originating any type of loan that a federal credit union (FCU) is allowed to originate. The proposed rule would expand permissible lending activities to include general consumer loans, auto loans, unsecured loans and lines of credit which builds on the current mortgage, business, credit card, and student lending activities allowed.

Request for Information and Comment on Financial Institutions' Use of Artificial Intelligence, Including Machine Learning

Upstart believes the agencies’ joint request for information (“RFI”) is a promising step toward achieving the goal of ensuring that America’s consumers can realize the benefits from AI lending in a well regulated, and supervised context. This response includes specific suggestions for agency action. In particular, we urge that the agencies, through coordinated action, work to revise, clarify, and update their existing model risk management, fair lending, and third-party oversight guidance so that banks and their service providers can understand and comply with expectations for the use of AI/ML in consumer lending.

2020

Request for Information on Standard Setting and Voluntary Certification for Models and Third-Party Providers of Technology and Other Services

This letter offers the FDIC our perspective as a provider to banks of a credit underwriting model that uses AI. AI enables substantial benefits, including greater efficiencies in the credit underwriting process for banks and, importantly, expanding credit availability for their customers.