Answer:
The first thing banks should do is adopt a risk-management program to evaluate current risks and minimize future risks. Keep in mind there is not just one fair lending act. The term "fair lending" refers to several laws, including the Equal Credit Opportunity Act (ECOA), the Fair Housing Act (FHA) and the Community Reinvestment Act (CRA). By carefully analyzing loan data to see how they match up within the confines of these laws, bankers can determine if they are in compliance or need to adjust their policies, procedures, products or assessment areas in order to improve their chance of a favorable review by regulators.
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