Fair Lending and Related Mortgage Developments and Trends
1 hour 30 minutes
Understand the federal regulatory guidance concerning fair lending issues in mortgage originations, marketing, and servicing.
Banks and financial institutions continue to face regulatory actions based on fair lending violations. In particular, the products and services that banks offer and the way these products are delivered is being challenged to be faster and nimbler. Today’s bank must consider non-traditional mortgage origination in areas that were once considered outside the banking zone; including being able to originate loans using such tools as internet products and payment platforms. This topic will describe the areas of concern for regulators who are looking at compliance with fair lending laws and the possibility of disparate impact. In addition, we will discuss the interaction of the fair lending laws with various other regulations (e.g., Equal Credit Opportunity Act, Flood Insurance Rules and the Unfair, Deceptive, Abusive Acts or Practices Act). Finally, we will discuss strategies for monitoring compliance as products and services change.
• You will be able to define the requirements of the regulation.
• You will be able to describe the interaction of Fair Lending Regulations with various regulations.
• You will be able to discuss how a systemic violation can results in significant financial penalties.
• You will be able to explain the risk issues associated with offering deposit products to the general public.