Sep 1

Sep 1 VIDEO: An Example of Disparate Impact

In this Compliance Clip (video), Adam gives an example of a disparate impact that actually that comes from the regulators. This example shows how an otherwise neutral policy or practice, applied equally to all credit applicants, can disproportionately exclude or burden certain persons on a prohibited basis.

Jul 3
Jul 3 CFPB Releases 2022 Fair Lending Annual Report to Congress

Adam Witmer

Regulatory Update, Fair Lending

On June 29, 2023, the CFPB released its Fair Lending Annual Report to Congress, describing its fair lending activities in enforcement and supervision; guidance and rulemaking; interagency coordination; and outreach and education for calendar year 2022. The Fair Lending Annual Report to Congress fulfills the Bureau’s statutory responsibility to report annually to Congress on public enforcement actions taken under the ECOA as well as the utility of the HMDA’s mortgage loan data collection requirements.

Apr 20
Apr 20 FHFA Proposes Rule on Fair Lending Oversight

Adam Witmer

Regulatory Update, Fair Lending

On April 19, 2023, the FHFA announced that it is seeking comment on a proposed rule that would formalize many of the Agency’s existing practices and programs regarding fair housing and fair lending oversight of its regulated entities. The rule would also expand requirements for the Enterprises in fair lending compliance and provide greater oversight and transparency regarding the Equitable Housing Finance Plans.

Nov 17
Nov 17 OCC’s Senior Deputy Comptroller Highlights Fair Lending Efforts

Adam Witmer

Regulatory Update, Fair Lending

On November 14, 2022, Senior Deputy Comptroller for Bank Supervision Policy Grovetta N. Gardineer spoke at the 2022 CRA & Fair Lending Colloquium on behalf of the Acting Comptroller. Gardineer talked about several OCC priorities, including the OCC’s ongoing efforts to ensure that OCC regulated financial institutions provide fair and equitable financial services.

Oct 17
Oct 17 DOJ Announces $1.3 Million Settlement with Evolve Bank

Adam Witmer

Regulatory Update, Fair Lending

On September 29, 2022, the DOJ announced that it has secured an agreement to resolve allegations that Evolve Bank & Trust engaged in lending discrimination on the basis of race, sex and national origin in the pricing of its residential mortgage loans from at least 2014 through 2019. Under the department’s settlement, which is subject to the approval of the District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers and will also pay a $50,000 civil penalty.

Sep 30

Sep 30 VIDEO: What is Redlining?

Adam Witmer

Fair Lending

In this Compliance Clip (video), Adam provides a general overview of one of the hottest topics in fair lending: redlining. In doing so, Adam provides examples of allegations of redlining as well as specific areas the Department of Justice has said it will focus on when determining whether a lender has redlined a particular area. Plus, Adam changes the way he ends this Compliance Clip, based on a recommendation from his son - that you won’t want to miss.

Jul 28
Jul 28 CFPB and DOJ Files Complaint Against Trident for Discrimination Against Minority Families

Adam Witmer

Regulatory Update, Fair Lending

On July 27, 2022, the CFPB and DOJ took action to end Trident Mortgage Company’s intentional discrimination against families living in majority-minority neighborhoods in the greater Philadelphia area. The CFPB and DOJ allege Trident redlined majority-minority neighborhoods through its marketing, sales, and hiring actions. If entered by the court, the settlement would require Trident to pay a $4 million civil penalty to the CFPB for victims’ relief fund.

Jul 1

Jul 1 VIDEO: Appraisal Discrimination Example

Adam Witmer

Fair Lending

In this Compliance Clip, Adam discusses a hot topic in fair lending: appraisal discrimination. This is a topic that comes from our recent Fair Lending Hot Topics program and is something that every financial institution should be aware of, as regulators have said they are seeing “a wave” of this issue across the country.

Jun 24

Jun 24 VIDEO: Analyzing HMDA Data for Fair Lending

Adam Witmer

Fair Lending, HMDA

In this Compliance Clip (video), Adam discusses how the regulators are analyzing HMDA data for fair lending and explains why financial institutions should be analyzing their own data as well - even if they aren’t a HMDA reporter. This is a topic that was covered in our upcoming Fair Lending Hot Topics program.

May 31
May 31 Companies Using Black-Box Credit Models Not Exempt from ECOA

Adam Witmer

Regulatory Update, Fair Lending, Adverse Action

On May 26, 2022, the CFPB confirmed that federal anti-discrimination law requires companies to explain to applicants the specific reasons for denying an application for credit or taking other adverse actions, even if the creditor is relying on credit models using complex algorithms. The CFPB published a Consumer Financial Protection Circular to remind the public, including those responsible for enforcing federal consumer financial protection law, of creditors’ adverse action notice requirements under the ECOA.