Financial institutions are under constant and increasing scrutiny from regulators to manage fair lending risk and ensure compliance with fair lending laws. In this context, conducting fair lending risk assessments is paramount for risk managers who are aiming to not only meet legal requirements, but also promote positive customer outcomes and avoid appearances of practices […]
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You know the importance of ensuring compliance with fair lending regulations. But have you considered the dangers of redlining specifically and completely? Redlining Defined Redlining is the practice of denying or limiting financial services to certain neighborhoods or areas, often based on factors such as race, ethnicity, or income level. While it is illegal, redlining […]
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As we move out of the holiday season and prepare for the new year, we wanted to take a moment and remind you of (4) HIGHLY critical issues at our doorsteps affecting lending compliance. We provide a brief summary of each of these with associated Action Items. Evaluation of the Impact of 2020 Census Changes […]
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You are no doubt aware of the significant changes with the implementation of the Current Expected Credit Loss (CECL) accounting standard. CECL represents a major shift in the way that financial institutions have historically estimated and set aside funds for credit losses on loans and other financial instruments. The evolving regulatory scrutiny associated with these […]
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Overview Earlier this month, there was a major development that could prove to be very significant in regard to fair lending. On September 1st, the CFPB released its proposed rule regarding small business lending data collection. The rule, mandated under the Dodd-Frank Act, and, if finalized and implemented, will require lenders to collect and report […]
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In early May 2021, the American Bankers Association held their ABA Innovation Expo virtual conference. Two of the sessions presented by Robert Morgan (SVP, Office of Innovation) stood out in highlighting how banks are implementing innovative technology as well as in revealing surprising insights into how fintechs and banks are evolving with digital lending. The […]
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With respect to potential fair lending issues, redlining has remained a significant focus during regulatory examinations for a number of years. There are a number of critical pressure points that should accompany an institution’s self-evaluation of redlining risk. These points are broad and range from marketing efforts, products, branch locations, delineation of assessment and market […]
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Radiant Lending Technologies and parent company Premier Insights are pleased to announce the addition of John DeLancey as Chief Technology Officer and Vice President of Engineering. DeLancey formally joined the companies in January 2021, although he had been working with them for many years in his role as owner of White Raven Technology LLC. His […]
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In previous posts (see The Fair Lending Risk of Good Intentions) we have discussed fair lending risks associated with certain well-intended practices. In an effort to avoid fair lending risks, institutions may find it tempting to have practices that either favor protected classes or policies that eliminate any variation in pricing or decisioning in an […]
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2020? Yes, 2020. With the bizarre nature of last year, it is easy to overlook some of the year’s significance. One is that 2020 was a Decennial Census year, with the population of the U.S. recounted. It is never too early to think about this as there will likely be changes that will affect those […]
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