Fair Lending Challenges: Preparing for Increased Enforcement

Fair Lending Enforcement Webinar, April 24, 2:30pm

An Inside Mortgage Finance Webinar

Recorded April 24, 2013

The federal government has stepped up its fair lending game. The Department of Housing and Urban Development has released a new rule formalizing, and expanding, a longstanding – but controversial – prohibition on disparate impact. The Consumer Financial Protection Bureau has launched its fair lending enforcement and supervision, bringing the issue to nonbanks and other lenders who haven’t been in the crosshairs before.

The Department of Justice, meanwhile, already this year has inked one fair lending settlement with a Texas bank.

HUD’s new rule, unveiled as the Supreme Court is about to weigh in on the subject, formalizes the ban on lending practices that have the effect, if not the intent, of discriminating against protected classes. The rule extends the prohibition to cover insurers and the government-sponsored enterprises and codifies the reliance on statistics rather than overt actions as a sign of violation.

The CFPB, which is also using the disparate-impact standard as the basis of its actions, is assigning a fair lending staffer to every supervision exam; conducting fair lending investigations; and striking alliances with the Department of Justice, HUD and other regulators. Litigation is imminent, according to those who have read the tea leaves of the bureau’s recently released strategic plan. On top of that, the CFPB, tasked with creating new fair lending policies and rules, is looking at new loan data collection points to use in making fair lending assessments.

Hear from top regulatory experts who can help you understand the impact of the increasing fair lending enforcement on your business in the Inside Mortgage Finance webinar recording: Fair Lending Challenges: Preparing for Increased Enforcement.


During the 90-minute webinar recording, you’ll hear from:

Jon Seward, Deputy Chief, Housing and Civil Enforcement Section, US Department of Justice Joseph Lynyak Partner, Finance Practice Pillsbury Winthrop Shaw Pittman Marsha Courchane, Vice President & Practice Leader, Charles River Associates  Melanie Brody Partner, Consumer Financial Services Practice K&L Gates

Jon Seward
Deputy Chief, Housing and Civil Enforcement Section
US Department of Justice

Joseph Lynyak
Partner, Finance Practice
Pillsbury Winthrop Shaw Pittman

Marsha Courchane
VP & Practice Leader 
Charles River Associates

 Melanie Brody
Partner, Consumer Financial Services Practice
K&L Gates

Topics discussed:

  • Can lenders comply with the disparate-impact rule without additional costs, as HUD has suggested?
  • What changes should you make to underwriting standards?
  • What new data collection points will the CFPB require in the name of fair lending supervision?
  • Does the new rule make it all but impossible to defend against fair lending suits?
  • What is the CFPB looking for in its fair lending exams?
  • How can you guard against suits claiming disparate-impact violations?
  • Will new policies make credit less available?
  • Does the new HUD rule make compliance easier by making the burden of proof consistent across the country?
  • What data is used to analyze lending decisions?
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Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.
No. It’s still difficult compliance/regulatory-wise.
Maybe. It’s under consideration.
Not now. But things could change as 2018 progresses.

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