In recent years, financial institutions have faced increasing scrutiny of their compliance with fair lending laws. One emerging and critical component of meeting regulatory expectations is conducting a Community Credit Needs Assessment (CCNA). A CCNA plays a pivotal role in identifying and addressing the financial needs of historically marginalized and under-resourced communities, including majority-minority and […]
Better Loan Quality, Fewer Headaches: Outsourcing Quality Assurance
Every financial institution should have a quality assurance plan as part of their overall risk management program that includes regular reviews of pre-funding and post-closing loan files. Pre-funding reviews allow lenders to identify and correct defects, such as underwriting and processing errors, inaccurate data, or inadequate documentation, prior to closing the loan, which can help […]
Federal Government Targets Redlining: Essential Insights for Lenders
The October 2021 Department of Justice (DOJ) Combatting Redlining Initiative is an aggressive and coordinated effort to eliminate redlining. Utilizing a whole government approach, the DOJ works with a number of regulators through the financial sector—from the Office of the Comptroller of the Currency to the Consumer Financial Protection Bureau to the National Credit Union […]
Three Steps to Strengthen HMDA Compliance
The lending industry and regulators have doubled down on fair lending and redlining initiatives, and the key to any fair lending analysis is accurate HMDA data. As a result, regulators have increased their scrutiny of HMDA compliance programs and data accuracy. The Home Mortgage Disclosure Act (HMDA) was initially approved by Congress in 1975 and […]
