Fair Lending never seems to fall out of fashion. While the rest of the industry is focusing on TRID, Flood Insurance and HMDA, the regulatory agencies, the Department of Justice and plaintiff attorneys are focused intently on the issue of fair lending. Large penalties and burdensome enforcement actions are the order of the day.
Occasionally evidence indicates the existence of hate-based discrimination. In most cases the evidences points to ignorance-based discrimination - the lenders truly did not understand they were violating the law; they thought they were protecting the interests of their employer. Understanding the bases of discrimination is the first step to avoiding fair lending violations.
Charges of discrimination can come from any direction. Discrimination can be obvious, subtle or unintended. 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 (CMS). The core of a Fair Lending CMS is a deep understanding of the basic rules regarding Fair Lending.
This information packed seminar provides a refresher on the basic concepts of fair lending. It also explains recent fair lending problems, the corrective action required by the agencies, the penalties imposed on the bank, and steps your institution can take to avoid similar problems. Recent and pending developments that will have a significant impact on Fair Lending are explored.
Upon completion of this program, participants understand:
- Basic fair lending concepts;
- Laws and regulations;
- Bases of discrimination;
- Types of discrimination;
- Recent Developments including:
- Agency consent orders;
- HUD Guidance on Limited English Proficiency
- Fair Lending actions initiated by municipalities;
- The impact of new HMDA rules on fair lending.
- Pending Developments
- Expansion of Regulation B to include data collection on loans to minority-owned businesses, women-owned businesses, and small businesses.
The program is designed for the board of directors, senior management, compliance officers, auditors, lending department management, loan operations personnel, loan officers, loan originators and others involved in originating or servicing loans of all types.