The Current Expected Credit Losses standards (CECL) have once again been delayed for an undetermined period of time due to the Coronavirus Pandemic. Despite CECL implementation being pushed down the road again, forecasting credit losses is again front and center. This stems from the uncertainty created by the Pandemic and the nation’s corresponding response. The […]
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The long awaited release of the expanded Home Mortgage Disclosure Act Loan Application Register (HMDA LAR) Data reported by filers in 2018 is now publicly available. These data contain elements that have not been reported by filers before, including critical loan decision attributes as well as specific data concerning loan pricing. In all, there are […]
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Regulatory exams are a way of life in the financial industry. Institutions, especially commercial banks, face examinations on a regular basis from both federal and state agencies. Examinations are generally divided into (2) categories: (a) compliance and (b) safety and soundness. Although frequency varies with the type of examination, the regulatory agency, and the size […]
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The financial crisis of over a decade ago is now behind us. For many, it is not much more than a distant memory. Although the causes and possible preventions have been theorized about and discussed extensively, and will be for future generations, there is no question that the underlying dynamic was the real estate asset […]
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The Bureau of Consumer Financial Protection issued its seventh Fair Lending Report to Congress. The report, released June 28, 2019, describes the Bureau’s fair lending activities in prioritization, supervision, enforcement, rulemaking, interagency coordination, and outreach for calendar year 2018.
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We have discussed previously in various posts some of the challenges of using regression and other statistical methods for fair lending reviews as well as the current emphasis on quantitative methods. Over the last 10 years, the regulatory and enforcement agencies as well as institutions have been gravitating more and more towards statistical methods when […]
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The FDIC released a compliance summary noting key findings and performance of the banks examined in 2018. The report states:
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In a speech on June 12, 2019, at CATO Summit on Financial Regulation, FDIC Chair McWilliams talked about the nation and the banking system’s role in society and economic well being. Drawing extensively from her own background and experiences as an immigrant to the United States, she noted one role of the FDIC as promoting […]
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FDIC insured institutions report $60.7 billion in aggregate net income in the first quarter of 2019, an 8.7 percent increase from a year earlier. Net interest income increased by $7.9 billion from a year earlier, explaining the jump in overall net income. Nearly 80 percent of banks reported increased net interest income from a year […]
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In previous posts we have emphasized the importance of customer service as an aspect of managing fair lending risk. Since fair lending deals primarily with treatment of applicants, and the agencies recognize that discrimination can take place at any aspect of the transaction, inconsistency in levels of service could constitute fair lending risk. Consequently, having […]
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