Lending institutions play a critical role in the economic health of the communities they serve. The bank regulations and regulators understand this and emphasize policies that promote meeting the needs of the entire com munities. As much of this emphasis is on housing, to effectively meet the needs of those communities and ensure equitable lending […]
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The Section 1071 Small Business Lending Data Collection Rule has been a significant topic in the financial industry, and recent developments indicate a dynamic and evolving situation. As of April 8, 2025, the landscape surrounding this rule is far from settled. What is Section 1071? For those unfamiliar, the Consumer Financial Protection Bureau (CFPB) issued […]
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The banking industry operates within a complex web of regulations, and ensuring compliance is paramount. However, achieving this compliance isn’t always straightforward. One of the most significant hurdles is the human element: the interpretation of regulations. Regulations are open to interpretation, which is a critical challenge for regulatory compliance in the banking sector. The Challenge […]
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Preparing for a fair lending examination can feel daunting, but with a proactive approach and a deep understanding of your institution’s practices, you can navigate the process with confidence. Drawing from our experience and regulatory guidance, here are 10 key areas your bank must be aware of and/or have analyzed about its past performance to […]
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In today’s dynamic business environment, collaborative business relationships are more important than ever. A “must-have” business relationship is one that proves its worth over time. The benefits of such a relationship extend to all parties involved and are especially valuable given the current operating environment. It is critical to have the best service provider you […]
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A comprehensive product analysis of Home Mortgage Disclosure Act (HMDA) lending and housing credit needs can be a crucial component of a bank’s compliance and fair lending risk management program. Such an analysis can address redlining concerns related to minority geographies and the race and ethnicity of borrowers, as well as Community Reinvestment Act (CRA) […]
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Fair lending laws and regulations were designed to ensure that all consumers have an equal opportunity to access credit. An FDIC fair lending examination is conducted to evaluate an institution’s compliance with these laws and regulations. This blog post will provide an overview of some of what to expect during an FDIC fair lending examination, […]
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With respect to fair lending scrutiny, redlining remains a critical concern for financial institutions. While data analysis is essential, a comprehensive understanding of redlining risk requires banks to look beyond the numbers. “Telling your bank’s story” involves proactively assessing policies, practices, and community context to ensure effective management of fair lending risk. Redlining, a form […]
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In today’s complex regulatory environment, financial institutions face increasing scrutiny and risk. This is especially true in areas like fair lending. To navigate this successfully, it is crucial to adopt a data-driven approach, combined with strong collaborative relationships. This post explores key strategies for mitigating risk based a collaborative approach. The Power of Understanding The […]
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Risk exists when there is potential for harm coupled with uncertainty of outcomes. The fair lending environment for lenders contains both. The approach to risk mitigation should be one of reducing uncertainty. Below we provide a four-step strategy that can be used to reduce uncertainty and, therefore, mitigate fair lending risk. Step 1: Know Your […]
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