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List of articles
How MSA Reclassifications Affect Tract Income Categories and HMDA Data
Introduction: Why MSA/MD Reclassification Matters Metropolitan Statistical Area (MSA) and Metropolitan Division (MD) reclassifications are more than administrative changes—they are strategic opportunities that can dramatically reshape lending portfolios. For financial...
What’s new with Section 1071 small business data collection rulemaking?
State of legal challenges to CFPB and Section 1071 rulemaking On May 16, 2024, the Supreme Court ruled in CFPB v. Community Financial Services Association of America (also known as the Community Financial case) that the CFPB’s funding mechanism is constitutional under...
Mortgage Lending in 2023: A Deflated Balloon
The 2023 Modified HMDA LARs have been unveiled, offering a sneak peek into last year's mortgage market's performance. While it's no secret that mortgage lending took a nosedive compared to the red-hot 2021, let's dive into the nitty-gritty details using the powerful...
Key Questions to Ask Vendors about their CRA Compliance Software: Ensuring Successful Submission and Analysis
Compliance with the Community Reinvestment Act (CRA) is essential for financial institutions that want to remain in good standing with regulators and the communities they serve. The CRA requires banks and other lenders to meet the credit needs of the communities in...
2023 Year-in-Review of HMDA, Fair Lending, and CRA Developments
Let’s recap what has happened in 2023 on three different fronts: HMDA, fair lending, and CRA (the Community Reinvestment Act). I count eight important developments. These are listed in no particular order below: 1. OMB released a new MSA list in July 2023, which will...
Navigating GMI Compliance: Avoiding Penalties in HMDA Reporting
In light of recent news regarding Bank of America's penalties for inaccurate reporting under the Home Mortgage Disclosure Act (HMDA), it's evident that precise reporting and adherence to HMDA regulations are paramount. Leveraging advanced HMDA analytical software...
Fair Lending Software: Choosing the Best Tool
In recent years, the U.S. federal government has taken concrete steps to clamp down on redlining — the illegal practice of denying services to residents of certain areas based on racial or ethnic composition. The Combatting Redlining Initiative reflects a groundswell...
Hidden ROI Through Proactive Redlining Compliance Investment
In life it's a common adage that "an ounce of prevention is worth a pound of cure." Nowhere is this wisdom more evident than in the realm of fair lending compliance practices. For banks and financial institutions, compliance with fair lending laws is a financial...
Ongoing Saga of Data Quality Challenges in DTI and HMDA Fields
It’s now been five years since the HMDA reporting requirements were dramatically expanded in 2018, and, in my assessment, there continue to be substantial data quality concerns. In this blog, I will focus specifically on one field, the debt-to-income (DTI) ratio,...
Mitigating Redlining Risk: A Bankers’ Guide
In light of recent Department of Justice (DOJ) complaints, banks can draw valuable lessons from the list below on how to avoid redlining and promote fair lending practices. These lessons are essential for ensuring that banks serve the credit needs of the entire...
CRA Modernization Final Rule Released
The CRA Final Rule was released today, October 24, 2023. The Office of the Comptroller of the Currency (OCC), Board of Governors of theFederal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) areadopting final amendments to their...
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ComplianceTech will present at the CUNA Lending eSchool 2023
Event Date: November 20-December 14, 2023 Registration Link CUNA Lending eSchool 2023Event Date: November 20 - December 14, 2023 Recorded Available Until: October 31, 2024 One of the important ways credit unions serve their members is through offering critical and...
Understanding the New Small Business Lending Rule
The Consumer Financial Protection Bureau (CFPB) recently introduced a new rule regulating small business lending practices. The rule addresses concerns over predatory lending and ensures that small businesses have access to fair and transparent financing options. This...
Mortgage Lending to Black Americans
Maurice Jourdain-Earl, Managing Director of ComplianceTech, recently released a 10-Year Trend Analysis detailing mortgage lending to Black Americas from 2012-2021. The full report is available for download using the link below. There...