Question: What is fair lending and how can the bank best protect its customers from unsafe lending practices?
Answer:
Fair lending refers to the equal treatment of all existing and prospective loan applicants without regard to race, color religion, gender, national origin, disability, familial status, marital status, age, or the fact that the applicant receives public funds or has exercised any right under the Consumer Credit Protection Act (CCPA). FDIC Chairmen Sheila Bair explained to the attendees of the May 2009, National Association of Realtors Legislative Meeting and Trade Expo in Washington, DC, some of the long-term challenges involved in improving today's current lending practices. She emphasized that "the first job will always be to protect the consumer from unsound and unscrupulous lending practices."
In order to comply with fair lending laws and regulations and to treat all customers fairly, the bank should provide appropriate training for employees which inform them on the importance of:
Knowing the bank's products and services.
Greeting customers properly.
Waiting on customers in the order in which they arrive.
Providing equal, quality service by using the same standards and procedures for all customers.
Assisting applicants in determining the loan program and products that best meet their needs and qualifications.
Offering the same materials to each applicant.
Providing consistent and complete information.
Refraining from making assumptions.
Refraining from considering the characteristics of associates of the applicant.
Encouraging open communication during the lending process.
Researching credit discrepancies with the same care for each applicant.
Reporting accurate denial reasons.
The Edcomm Group
The Edcomm Group Banker's Academy is a 22-year-old multimedia training company, recognized by USA TODAY as the training provider of choice for the banking industry. The Edcomm Group Banker's Academy offers programs such as Compliance, Teller, Bank Secrecy Act (BSA), Anti Money Laundering (AML), Basel II, EEO, Sexual Harassment, Elder Financial Abuse, Credit Risk Management, Fraud Prevention, Mortgage Fraud Prevention, Security, Ethics, Collections, Foreclosures, OSHA, Lending, Sales & Service, System Simulations, System Conversions, Leadership, Operations Management, and individual job training and career development through http://www.jobtraining.bankersacademy.com. To learn more, please contact Dr. Linda Eagle, President of The Edcomm Group Banker's Academy, at +1.212.631.9400 or linda.eagle@edcomm.com, and visit us on the web at http://www.bankersacademy.com.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
