Koblenz likened the CFPB's solution for discriminatory lending practices to a doctor prescribing a poor medication for an illness that may not even exist.

"The CFPB alleged there's an illness out there, and they have a great medication to cure it," he said. "First, that illness may not even be there at all, and if it is, the medication doesn't address it.  Instead, it introduces an adverse side effect – the risk of steering. But, there's another drug that addresses that illness and doesn't result in a bad side effect. It produces the ability for dealers to negotiate."  

That "other drug" is NADA's Fair Credit Compliance Policy & Program, which is designed help auto dealers comply with fair lending laws while staying competitive in the marketplace, he said. The program, which can be downloaded at nada.org/faircredit, involves establishing standard rates and only deviating from those rates due to pre-set, legitimate business reasons.

The program benefits credit unions that originate loans through auto dealers because it gives them specific reasons for otherwise unexplained auto loan pricing disparities that could be due to race, Koblenz added.

"From a credit union perspective, it's beneficial because you'll have a good reason for why there's a difference in price, and you'll avoid being targeted for discrimination," he said.