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What is a Low Denial Rate Really Telling You?
Here’s an observation worth considering: A low denial rate irrespective of prohibited bases does not in itself ensure that denial disparities by prohibited bases will disappear. In fact, that low denial rate could be a warning that other issues exist, and if the denial rate is low enough, it would be a red flag that…
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Appraisals, collateral denials, and the potential for discrimination
Freddie Mac recently released a study Research Note pdf based on their analysis of appraisal valuations. It’s worth taking a look. The following sentence from the report summarizes the findings: Our preliminary modeling results suggest that even when taking structural and neighborhood characteristics into consideration, a property is more likely to receive an appraisal lower than…
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Fair Lending: Expectations vs. Reality
Inaccurate information held by organizations regarding fair lending risk management can hinder them from successfully managing that risk. Today, we’re looking at five prevalent expectations within the industry and the reality for each. Expectation #1: Written policies ensure that an organization doesn’t need to worry about fair lending because it’s entirely protected. Reality: Although it’s…
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Don’t Let Reckless Decisions Today Become Tomorrow’s Fair Servicing Compliance Issues
In this current volatile economic environment caused by a public health crisis, mortgage borrowers may have difficulty making mortgage payments. The OCC has directed banks to be flexible with such borrowers. The GSEs have encouraged forbearance and halted foreclosure activity. Like in the most recent financial crisis, mortgage servicers’ handling of loss mitigation requests will…
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Increase in FHA Mortgage Limits for 2020
If you’re lending funds to future homeowners in 2020, an increase in FHA loan limits in your local county may impact your daily operations. What is FHA? The Federal Housing Administration (FHA) provides mortgage insurance on loans made by approved lenders, like you, throughout America and is one of the largest mortgage insurers worldwide with…
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5 Ways Cloud-Based Software Can Support Your Institution’s Fair Lending Practices
The financial industry has always been dominated by statistics, figures, and analytics, but in today’s fast-paced world, the speed at which you’re able to make calculations is just as important as the result, and that means you need the best tools available. Here are just 5 reasons why cloud-based software is better than traditional physical…
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Breaking Down Secondary Market Activity in 2018
Many people believe that the signs of a healthy economy are in the number of mortgages being applied for by Americans, but one of the true indicators of economic and financial health is in the secondary market, where government-sponsored enterprises (GSE) choose which mortgages to purchase and securitize from financial institutions. Let’s take a look…
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Looking Back on the Success of the 2019 CUNA Fair Lending Workshop
Over the past few years, the Credit Union National Association has been hosting symposiums to educate credit unions on how they can succeed on the right side of the law. This year, ComplianceTech spoke at the conference to educate industry professionals and take a leading role in the industry. Here are some of the highlights…
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Profile of a Millennial Mortgage Loan Applicant
Finally, we can take the guess work out of describing the mortgage loan preferences of millennials. With the expanded 2018 HMDA data fields, we can analyze lending by the applicant’s age. This not only gives us a chance to better describe the typical millennial applicant, but we can also compare them to all other age…
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DIY File Review Using 2018 HMDA Alone: a Step-by-Step Guide*
Thanks to the expanded underwriting and pricing fields that are part of the 2018 HMDA dataset, users of the popular LendingPatterns™ software can identify file records based on qualification criteria and outcomes that are candidates for further review. Specifically, users can identify applicants that appear similarly situated based on some qualifications but had different underwriting…