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Key Questions to Ask Vendors about their CRA Compliance Software: Ensuring Successful Submission and Analysis
Compliance with the Community Reinvestment Act (CRA) is essential for financial institutions that want to remain in good standing with regulators and the communities they serve. The CRA requires banks and other lenders to meet the credit needs of the communities in which they operate, particularly in low- and moderate-income areas. One important aspect of…
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Navigating GMI Compliance: Avoiding Penalties in HMDA Reporting
In light of recent news regarding Bank of America’s penalties for inaccurate reporting under the Home Mortgage Disclosure Act (HMDA), it’s evident that precise reporting and adherence to HMDA regulations are paramount. Leveraging advanced HMDA analytical software empowers lenders to take proactive steps toward compliance and avoid similar pitfalls. The Significance of Government Monitoring Information…
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Hidden ROI Through Proactive Redlining Compliance Investment
In life it’s a common adage that “an ounce of prevention is worth a pound of cure.” Nowhere is this wisdom more evident than in the realm of fair lending compliance practices. For banks and financial institutions, compliance with fair lending laws is a financial imperative. Redlining, the practice of denying financial services to certain…
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Mitigating Redlining Risk: A Bankers’ Guide
In light of recent Department of Justice (DOJ) complaints, banks can draw valuable lessons from the list below on how to avoid redlining and promote fair lending practices. These lessons are essential for ensuring that banks serve the credit needs of the entire community, without discrimination. The good news is that for many of these…
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Understanding the New Small Business Lending Rule
The Consumer Financial Protection Bureau (CFPB) recently introduced a new rule regulating small business lending practices. The rule addresses concerns over predatory lending and ensures that small businesses have access to fair and transparent financing options. This blog post will discuss the critical elements of the new small business lending rule and what it means…
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Addressing Appraisal Disparities: Leveraging HMDA Data for Fair Lending Practices
Since the release of a Freddie Mac study in September 2021, numerous articles and studies have further explored the issue of appraisal disparities. These reports and articles highlighted significant gaps in property valuations by tract majority race and applicant race. How to Use HMDA Data to Determine Denial Risk Based on Insufficient Collateral In light…
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Key Questions to Ask about CRA Submission Software
Compliance with the Community Reinvestment Act (CRA) is essential for financial institutions that want to remain in good standing with regulators and the communities they serve. The CRA requires banks and other lenders to meet the credit needs of the communities in which they operate, particularly in low- and moderate-income areas. One crucial aspect of…
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Practical Guidance on How to Monitor and Assess Redlining Risk
This article will highlight a few recent high profile redlining cases and their settlements. Then, we will explain how fair lending software and consulting can help mortgage lenders evaluate their redlining risk. Our tools are guided by the following settlements involving the federal government: ESSA Bank & Trust City National Bank (2023) Lakeland Bank (2022)…
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HMDA Data and Strategic Planning for Mortgage Lenders
As a mortgage compliance professional, you know your fair lending responsibility related to HMDA; but I want to go beyond and discuss how to use HMDA data for strategic planning. If you are concerned with corporate growth and development, then you know this is more than a check-the-box exercise. Done with attention and thought, the…
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How LendingPatterns™ helps you make sense of HMDA
HMDA data is both a recurring concern and a useful tool for financial institutions. Banks, credit unions, and independent mortgage companies have to submit HMDA every year or risk the penalties so that all of this data can then be viewable to the public and can paint a useful picture of the overall market. ComplianceTech…