Fair Lending Essentials

Federal fair lending enforcement actions against financial institutions continue to poise huge risks to any financial intuition regardless of size or complexity. In this session, you’ll review the key elements of an effective fair lending program, gain tactical tips for maintaining compliance, and learn to avoid common challenge areas that leave your institution open to unnecessary risk.

WHY?

A strong fair lending program requires more than simply dotting i’s and crossing t’s. Discrimination can be obvious, subtle, or unintended. Charges of discrimination can come from any direction. Risk comes in the form of penalties, regulatory enforcement actions, civil liability, or damage to a bank’s reputation, to mention a few. The best defense to these threats and risks is developing and maintaining a sound fair lending compliance management system.

Over the years Fair Lending violations have led to consent decrees that include:

• Significant civil monetary penalties.
• New location and employee requirements.
• Reimbursement to borrowers; and
• Burdensome remedial action to prevent further violations.

PROGRAM CONTENT

Upon completion of this program, participants understand:

• Fair lending concepts:
  • Laws and regulations.
  • Bases of discrimination.
  • Types of discrimination.
• How to mitigate fair lending risk:
  • Reviewing policies and procedures for fair lending problems and eliminating those concerns.
  • Training – Who, How, When, and What
  • Monitoring/Auditing.
    • Exemptions.
    • HMDA data.
    • Marketing/Advertising.
    • Statistical analysis
      • When is such analysis suggested.
      • How to conduct the analysis.
      • Should you do it yourself or contract the service.
• Recent Developments:
  • Finalizing Small Business Data Collection and Reporting (Section 1071)
  • The New CRA rules passed on 10/24/2023 and how they are tied to fair lending progams.
  • Fair lending enforcement actions.
  • Redlining cases.

BACKGROUND

During the Biden Administration, it has become clear that enforcement of fair lending laws is a high priority. Enforcement actions are not limited to just one or two key issues; there is broad assault on fair lending issues.

Fair lending laws, the Equal Credit Opportunity, and Fair Housing Acts, prohibit illegal discrimination on a prohibited basis. CRA deals with income disparities, requiring financial institutions to meet the needs of their entire community, including low- and moderate-income areas.

In redlining cases, lending policies result in a lack of lending in certain areas. The financial institutions simply fail to meet the credit needs of its selected assessment area. The examples of fair lending enforcement are vast and provide reason why financial institutions need to go back to the basics to ensure programs cover the essential requirements need to comply.  To ensure both Fair Lending And CRA Redlining issues are identified.

WHO?

This program is designed for members of the board of directors, managers of all lending departments, bank counsel, compliance officers, fair lending and CRA officers, loan officers, and auditors.

Reminder: Your registration includes a playback of the session, which is available after the session concludes.