What should be included in a fair lending risk assessment?
What should be included in a fair lending risk assessment?
Practically speaking, a fair lending risk assessment often consists of a review of the financial institution’s history, policies and procedures, written documentation, tracking tools, reports, training materials, and exam results; conversations and interviews with key employees; and often, fair lending data analysis.
What is the key to fair lending?
Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans. Fair lending guarantees the same lending opportunities to everyone.
What is a violation of fair lending?
Discriminatory policies, procedures, and practices, even unwitting ones, constitute a violation of fair lending regulations that may result in fines and penalties, litigation, and reputational harm to the lender.
What can a lender legally discriminate on?
Mortgage Lending Discrimination The Fair Housing Act, another federal law that is relevant to mortgage lending, prohibits lenders from discriminating on the basis of race, religion, color, national origin, sex, familial status, or disability in housing sales or loans.
What is covered under ECOA?
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.
Who is responsible for fair lending compliance?
the Consumer Financial Protection Bureau
With the exception of those federally insured credit unions with assets over $10 billion, which are under the authority of the Consumer Financial Protection Bureau, NCUA enforces ECOA and Regulation B in federal credit unions and the Home Mortgage Disclosure Act (HMDA) and Regulation C in all federally insured credit …
What are the violations of fair lending?
What is an example of discrimination in lending?
Examples of Lending Discrimination Providing a different customer service experience to mortgage applicants depending on their race, color, religion, sex, familial status, national origin or disability. Refusing to consider a mortgage applicant’s disability-related income, such as SSI or SSDI.
What are the consequences of violating fair lending requirements?
Failure to comply with the Fair Lending requirements may: Failure to comply with the Fair Lending requirements may result in fines and penalties, harm the bank’s reputation, and be a violation of the Code of Conduct, which could result in corrective action, up to and including termination of your employment.
