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2022 Year-in-Review of HMDA, Fair Lending, and CRA Developments
Let’s recap what has happened in 2022 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. In 2022, the FFIEC released new census tract...
CRA (Community Reinvestment Act) State Laws
We all know the Community Reinvestment Act (CRA) was enacted in 1977. It requires banks to meet the needs of communities in which they do business with a specific emphasis on lending to low- and moderate-income borrowers and/or in low- and moderate-income census...
Section 1071 Small Business Lending Fair Lending Analysis
Recently, there has been a lot of buzz surrounding the implementation of Section 1071 for Small Business Lending and its impact on the financial services industry. What we do know is that the CFPB is in the process of writing regulations to implement Section 1071 of...
Practical Guidance on How to Monitor and Assess Redlining Risk
This article will highlight a few recent high profile redlining cases and their settlements. Then, we will explain how fair lending software and consulting can help mortgage lenders evaluate their redlining risk. Our tools are guided by the following settlements...
2021 HMDA Data Now in LendingPatterns™
ComplianceTech Announces the Refresh of the Home Mortgage Disclosure Act Data in LendingPatterns to Include 2021 Data ComplianceTech today announces the refresh of the Home Mortgage Disclosure Act (HMDA) data in LendingPatterns™ to include the 2021 data as published...
Brief Summary of 2021 Modified HMDA LARs
HMDA Data Summary The total number of rows in the 2021 Modified LARs (25.96 million) and the number of originated transactions (14.89 million), while very high by historical standards, are both around two percentage points higher than the 2020 Snapshot data. What is a...
HMDA 2021: Loan Purpose Trend by Race and Ethnicity
LendingPatterns™ is a premier web-based, HMDA data-mining tool for the Home Mortgage Disclosure Act. It’s an easy-to-use solution with the power and flexibility to generate custom reports and identify fair lending risks related to...
HMDA Data and Strategic Planning for Mortgage Lenders
As a mortgage compliance professional, you know your fair lending responsibility related to HMDA; but I want to go beyond and discuss how to use HMDA data for strategic planning. If you are concerned with corporate growth and development, then you know this is more...
2021 Year-in-Review of HMDA, Fair Lending, and CRA Developments
As we ring in the new year, it is helpful to recap what has happened in 2021 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. HMDA Filing...
How LendingPatterns™ helps you make sense of HMDA
HMDA data is both a recurring concern and a useful tool for financial institutions. Banks, credit unions, and independent mortgage companies have to submit HMDA every year or risk the penalties so that all of this data can then be viewable to the public and can paint...
Maintaining Your HMDA Data Accuracy to Avoid Penalties
When it comes to your client’s data, your main priority should rightly be keeping it secure from any third parties. However, when the time comes to deliver the data and you have accidentally omitted a piece of information, it can have serious consequences for you...
Five Reasons for Doing a HMDA Scrub
With only a few months left before your March 1 filing, now is a good time to plan the year-end HMDA scrub. The point of a HMDA Scrub is to compare specific data in the loan application register (LAR) to loan origination source...
Analyzing “Not Provided” Race/Ethnicity in HMDA Data Before Submission
An old adage is that statistical analysis can only be as good as the data that goes into it. Garbage in, garbage out. In the realm of fair lending analysis, there is a dilemma that every analyst must deal with, namely, how to handle and analyze HMDA records where race...
5 Ways HMDA Data Are Used in Fair Lending Analysis: Your analysis is only as good as the data
Fair lending analysis attempts to use lending transaction data to tell the story of the evenhandedness of underwriting, pricing, and marketing decisions in terms of what happened when, where, why, how, and to whom. Fair lending compliance managers may use HMDA...
5 Ways to Use HMDA Data in a Non-Fair Lending Context
I have always been shocked by the reluctance of lenders to use HMDA data for reasons other than fair lending. Too often, mentioning the four letters, H M D A, causes heartburn among lenders. This is understandable because HMDA is associated with...