All in Fair Lending

VIDEO: What is Overt Evidence of Disparate Treatment?

VIDEO: What is Overt Evidence of Disparate Treatment?

Adam Witmer
Fair Lending

In this Compliance Clip (video), Adam explains how a lender could end up with overt evidence of disparate treatment. This video takes just 7 minutes to view and can be shared with your lending team or others in your organization who need to understand fair lending rules and regulations. And be sure to watch our for Adam’s alter ego lender personality in this video…

CFPB Issues Outline of Proposals for Small Business Data Collection

Adam Witmer
Fair Lending, Regulation B, Regulatory Update

On 9/15/20, the Consumer Financial Protection Bureau (CFPB) issued an “Outline of Proposals Under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act.” This release explains how the CFPB is currently working to implement Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that will create a requirement for financial institutions to compile, maintain, and report certain data on applications for credit from women-owned, minority-owned, and small businesses.

VIDEO: Disparate Impact

VIDEO: Disparate Impact

Adam Witmer
Fair Lending

In this video, Adam talks about the third type of discrimination recognized by the courts: disparate impact.  He explains the main source of this type of discrimination and gives a few examples of what to look for.

CFPB Seeking Comments on Preventing Discrimination

Adam Witmer
Fair Lending, Regulatory Update

In July of 2020, the CFPB issued a Request for Informatino on the Equal Credit Opportunity Act and Regulation B which is seeking comments and information to identify opportunities to prevent credit discrimination, encourage responsible innovation, promote fair, equitable, and nondiscriminatory access to credit, address potential regulatory uncertainty, and develop viable solutions to regulatory compliance challenges under the Equal Credit Opportunity Act (ECOA) and Regulation B. Comments are due 60 days after publication in the Federal Register.

HUD Terminates Fair Housing Rule

Adam Witmer
Fair Lending, Regulatory Update

On 7/23/2020, the U.S. Department of Housing and Urban Development (HUD) announced the termination of the Obama Administration’s Affirmatively Furthering Fair Housing (AFFH) regulation issued in 2015. According to HUD, this rule “proved to be complicated, costly, and ineffective— so much so that Secretary Carson essentially removed its burden on communities by suspending the regulation’s 92 question grading tool in January 2018.” Replacing this rule is a brand-new rule called Preserving Community and Neighborhood Choice. According to HUD, this rule

CFPB Releases 2019 Fair Lending Report to Congress

Adam Witmer
Regulatory Update, Fair Lending

On April 30, 2020, the CFPB released their annual Fair Lending Report to Congress that highlights how in 2019 the CFPB continued to focus their fair lending efforts on mortgage lending, student loans, small business lending and other market areas. The CFPB also explains that they encouraged consumer-friendly innovation to, among other things, expand access to unbanked and underbanked consumers and their communities.

Incomplete Applications

Adam Witmer
Regulation B, Fair Lending

This is a guest post by one of our Compliance Cohort members, Jennifer Johnson.  Jennifer is a Vice President and Chief Risk Officer at a $225 million community bank, and shares her years of experience in multiple banks with us in this article.

In a previous article, we discussed those frustrating customers who come to us with bits and pieces of the information we need to make a loan decision, providing us with an incomplete application. If you’re OCD like me, those situations drive you more than a little crazy, especially when you know that you have obligations to notify the customer of your decision within 30 days of receipt of the request. So how do you handle these scenarios without pulling out your hair? I have a simple solution…

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