It used to be that the past leaders of financial institutions didn’t pay much attention to compliance unless they absolutely had to. Today, this perception has been changing a great deal and there are many executives and senior managers that are becoming more immersed in the world of compliance. When you want to get serious about compliance risk and how to manage it, you should be looking into professional fair lending compliance to get the answers that you have been searching for.
One of the advantages that come from such a shift in perspective is that being involved in a program for active risk management is that it can put your financial institution in a position where it can grow successfully. For example, lending compliance is a major consideration when you are looking into changes for your network. Any risks that remain unchecked can end up derailing your efforts a great deal. Additionally, the insight gained here with the analysis can show you some interesting business opportunities for your sales and marketing departments.
The following are some lending compliance essentials that can be helpful for institutions of all kinds:
Know Your Market
Anyone can tell you that every market will be different, and the chances are good that you have learned this through your sales and marketing efforts. This can also be a valuable reality to have when it comes to the way that you look at fair lending compliance because each market will have a varying level of risk. You need to know the demographic landscape of your market and all of the prohibited groups within so that you can have a clear picture of your risk.
Learn The Key Risks
Risk will be present in each stage of the credit process. A regulator will focus on several risk areas, which include marketing, redlining, pricing, steering, servicing, loss mitigation, and underwriting. You should evaluate all risk quantitively as well as qualitatively.
Be Subjective And Discreet
While there might not be a vast amount of blatant discrimination, there are some practices and policies that can impact certain individuals differently. Both discretion and subjectivity can end up in potential discrimination risk if you are not careful, so be sure that your compliance team and your consultant review all procedures and policies thoroughly.
Fair Lending Compliance Training
Positive lending compliance training is a good thing for institutions of all kinds. Most institutions that have more than annual training are generally more successful. This training will usually include role-specific training for anyone who is involved in the lending process.
ComplianceTech is available to help you with all of your fair lending compliance needs. We offer a range of analytical solutions that are data driven for your regulatory and legal compliance efforts. You can count on us to bring you a customized approach so that you can better serve each client while still keeping a confidential report of all findings. Contact us today if you would like to learn more about what we can do for you from a fair lending and reporting standpoint.
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