Guide to Fair Lending Compliance, 2nd Edition

There are more ways to fall into fair lending trouble than ever and more enforcers watching to see if you do.

The Department of Justice’s fair lending unit, on the job since 2010, has identified residential finance as its current main focus. The DOJ has teamed up with the Department of Housing and Urban Development, bank regulators and the Consumer Financial Protection Bureau to ramp up its anti-discrimination efforts. The result, to date, is 44 enforcement actions, yielding $1.4 billion in penalties.

The Consumer Financial Protection Bureau is keeping an eagle eye out for fair lending violations, scouring Home Mortgage Disclosure Act data for patterns of discrimination and undertaking targeted Equal Credit Opportunity Act reviews and deeper fair lending analysis in supervisory exams and investigations. It is pursuing its own remedies in some cases and referring others to the DOJ.

Both the DOJ and the CFPB are focused on effect, meaning there is no safe harbor available just because one didn’t intend to discriminate.

Get the full picture of current fair lending exam and enforcement risks and what you can do to lessen your exposure in Inside Mortgage Finance’s all-new Guide to Fair Lending Compliance: 2nd Edition.

Partial Table of Contents

Fair Lending Issues

+ Types of Discrimination

+ Prohibited Practices

+ Redlining Issues

+ Defining a Lender’s Peers

+ Underwriting Risk Factors

+ Pricing Risk Factors

+ Marketing Risk Factors

+ Opportunities to Improve

+ Insight from Consumer Advocates, Regulators

 

The CFPB and Fair Lending

+ ECOA Reviews

+ Underwriting Reviews

+ Varying File Selection Methods

+ Managing Underwriting Risks

+ Fair Lending Risk Under TRID and HMDA

+ Non-QM Lending

 

Fair Lending Risk Assessment

+ Organizing the Risk Assessment

+ Controls to Mitigate Risk

+ Targeted Analysis

 

Recent Fair Lending Actions

+ DOJ Settlement with Evolve Bank & Trust

+ CFPB, DOJ Settlement with Hudson City

+ Miami Lawsuits Against Big Banks

+ Cities’ Predatory Lending Charges Against Wells

+ Lawsuit Against Fannie Mae’s REO Practices

+ Lenders Prevail Against Novel Charges

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Poll

With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.

47%

Yes, by a lot.

5%

Yes and, heck, we may even do non-QM lending.

14%

No, not at all.

26%

No and we may even tighten credit.

7%