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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 imperative. Redlining, the practice of denying financial services to certain…
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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, which seems to be a source of perpetual headaches for reporting institutions. What are…
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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 community, without discrimination. The good news is that for many of these…
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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 regulations implementing the Community Reinvestment Actof 1977 (CRA) to update how CRA activities qualify for consideration,…
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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 dynamic lending services. Are you looking to update and refresh your approach to lending to…
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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 blog post will discuss the critical elements of the new small business lending rule and what it means…
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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 are three goals outlined in the report: Provide an overview of mortgage lending to black Americans using ten years of HMDA data from…
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The Latest DOJ Redlining Settlement: Lessons Learned
The US Department of Justice (DOJ) announced its Combatting Redlining Initiative in the fall of 2021. Each redlining settlement provides a roadmap for lenders to follow to ensure that lending activity is adequately monitored. Of utmost importance is ensuring that if a problem is identified, there is an action taken, and the issue is not…
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Addressing Appraisal Disparities: Leveraging HMDA Data for Fair Lending Practices
Since the release of a Freddie Mac study in September 2021, numerous articles and studies have further explored the issue of appraisal disparities. These reports and articles highlighted significant gaps in property valuations by tract majority race and applicant race. How to Use HMDA Data to Determine Denial Risk Based on Insufficient Collateral In light…