All in Fair Lending

Compliance Considerations for CD Secured Loans

Adam Witmer
Compliance Management, BSA, Fair Lending, CRA, Regulation Z

Compliance requirements for CD secured loans are not typically a huge topic of discussion for compliance seminar speakers or article authors.  That said, one of our members suggested this topic (you know who you are!), and I think it is a great topic to write on from the perspective of CD secured loans, rather than just bringing up these loans when discussing applicable regulations (which is usually the way it happens). The truth is that most financial institutions (and regulators) just…

HUD Comments on Disparate Impact Due August 20, 2018

Adam Witmer
Fair Lending, Regulatory Update

As compliance professionals, we have an opportunity to impact future rules and regulations by providing comments to proposed rulemakings.  This opportunity is actually built into the rulemaking process, and I can tell you from reading many final rules over the years that comments are at least considered and often addressed in final rules.  The truth is that comments can make a difference and, right now, we all have an opportunity to provide feedback (comment) regarding how disparate impact is evaluated under the Fair Housing Act.

ECOA Incomplete Application Notice

Adam Witmer
Regulation B, Fair Lending

An incomplete application can create unique challenges for a financial institution.  For example, many financial institutions have a difficult time just understanding what an incomplete application really is.  To understand what an incomplete application is, we must first understand how Reg B defines a completed application.  Under Regulation B, a completed application is an application in which a creditor...

Fair Lending Risk - Disparate Impact

Adam Witmer
Fair Lending

Disparate impact is when a lender applies a racially or otherwise neutral policy or practice equally to all credit applicants, but the policy or practice disproportionately excludes or burdens certain persons on a prohibited basis.  In other words, a specific policy of your financial institution can not inadvertently discriminate.  

Fair Lending Risk - Comparative Evidence of Disparate Treatment

Adam Witmer
Fair Lending

Comparative evidence of disparate treatment occurs through an analysis of loan files where the result is that a protected class received less favorable terms than a control group.  When an auditor or examiner is looking for this type of discrimination, they will will conduct a test called a “comparative analysis.”  In simple terms, a comparative analysis is when you compare the “best” denials against the “worst” approvals in an attempt to find overlap.  In other terms, a comparative analysis looks at

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