All in Fair Lending

OCC & DOJ Announce Redlining Settlement

Adam Witmer
Regulatory Update, Fair Lending

On 8/30/2021, the OCC and Department of Justice (DOJ) jointly announced an agreement to resolve allegations that Cadence Bank, which is headquartered in Atlanta, engaged in lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in the Houston, metro area. Under the department’s settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of those neighborhoods. In conjunction with this announcement, the OCC also announced that it has assessed penalties against the bank in the amount of $3 million related to the violations alleged in the department’s complaint.

Address Updates for OCC Posters & Notices

Adam Witmer
CRA, Regulatory Update, Regulation B, Fair Lending

On 8/5/2021, the OCC issued Bulletin 2021-35 to inform national banks, federal savings associations, and other applicable branches/organizations of the appropriate names and addresses for certain notices. Specifically, the Bulletin provides the current addresses needed on notices/posters required by the Community Reinvestment Act (CRA), Equal Credit Opportunity Act, and the Fair Housing Act. Banks should make the appropriate changes to their notices and posters, if necessary, within 90 days of this bulletin’s date of issuance.

FHFA Publishes Policy Statement on Fair Lending

Adam Witmer
Fair Lending, Regulatory Update

On 7/1/2021, the Federal Housing Finance Agency issued a policy statement on Fair Lending to communicate the agency's general position on monitoring and information gathering, supervisory examinations, and administrative enforcement related to the Equal Credit Opportunity Act, the Fair Housing Act, and the Federal Housing Enterprises Financial Safety and Soundness Act. The FHFA is also soliciting comments on its application.

VIDEO: Reg B GMI on Refinance

VIDEO: Reg B GMI on Refinance

Adam Witmer
Fair Lending, Regulation B

In this Compliance Clip, Adam takes a deep dive into the world of government monitoring information (GMI) under Regulation B. If your financial institution recently became exempt from HMDA and you now collect GMI only under Regulation B - or maybe you have always been a Reg B bank - then you will want to check out this video. Basically, Adam answers the long-asked question of: Is GMI required under Reg B on a loan that is refinancing a loan that was not purchase money?

HUD Charges Landlord with Discrimination Against Family with 10 Children

Adam Witmer
Fair Lending, Regulatory Update

On 4/20/21, the U.S. Department of Housing and Urban Development (HUD) announced that wass charging an owner of a six-bedroom rental home in Frisco, Texas, with violating the Fair Housing Act by refusing to rent to a woman and her ten children. HUD’s charge alleges that the owner stated that he could not rent the home to a family with eleven people, even though the mother, a HUD Housing Choice Voucher recipient, was qualified to rent the home.

VIDEO: What is Overt Evidence of Disparate Treatment?

VIDEO: What is Overt Evidence of Disparate Treatment?

Adam Witmer
Fair Lending

In this Compliance Clip (video), Adam explains how a lender could end up with overt evidence of disparate treatment. This video takes just 7 minutes to view and can be shared with your lending team or others in your organization who need to understand fair lending rules and regulations. And be sure to watch our for Adam’s alter ego lender personality in this video…

CFPB Issues Outline of Proposals for Small Business Data Collection

Adam Witmer
Fair Lending, Regulation B, Regulatory Update

On 9/15/20, the Consumer Financial Protection Bureau (CFPB) issued an “Outline of Proposals Under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act.” This release explains how the CFPB is currently working to implement Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that will create a requirement for financial institutions to compile, maintain, and report certain data on applications for credit from women-owned, minority-owned, and small businesses.

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