Follow us as we explore and analyze the latest developments in Fair Lending, CRA, HMDA, BSA/AML and much more…

U.S. Supreme Court Recognizes New Fair Housing Act Stakeholders in Bank of America, et. al. v. City of Miami

Can a city, or potentially other governmental entities, sue lenders over their discriminatory lending practices under the Fair Housing Act?  On May 1, 2017, the U.S. Supreme Court said “yes,” but with the following conditions: The city must be an “aggrieved person” within the meaning of the Fair Housing Act; The alleged harm must be […]

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A New Direction for State AML Compliance Roadmaps

Federal anti-money laundering (AML) regulations, rooted in the Bank Secrecy Act (BSA) and USA PATRIOT Act, have long required financial institutions to maintain internal control systems to assure compliance, provide for independent testing, designate individuals responsible for compliance and provide training for all appropriate personnel. Moving beyond this federal BSA/AML framework, the New York State […]

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Using BancorpSouth as a Learning Opportunity for Redlining

On June 29, 2016, a new case was added to the growing list of evidence signaling the importance of redlining as a key area of focus for Fair Lending compliance. In a joint effort between the Consumer Finance Protection Bureau (CFPB) and the U.S. Department of Justice (DOJ), BancorpSouth was accused of several discriminatory practices related […]

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Evaluating Redlining Risk in Mortgage and Consumer Lending

In recent years, the Department of Justice (DOJ) and various federal, state, local and non-profit entities have generated many headlines about identifying and pursuing cases of redlining against financial institutions. Recent cases include: a $33 million settlement between Hudson City Savings Bank and the DOJ; an $825,000 settlement between Evans Bank and the Attorney General […]

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AML Transaction Monitoring – “Tuning” In to Compliance

Anti-money laundering regulations require financial institutions to prevent their customers from conducting illegal business activities through their services. AML transaction monitoring software uses artificial intelligence to sift through thousands of transactions to identify deviations from usual and customary activity, as defined by the rules and parameters programmed into the software. Not all alerts indicate wrongdoing, […]

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Telephone Bank Fraud

Managing the Risk of Telephone Bank Fraud and Identity Theft

For financial institutions, managing bank fraud and identify theft is a 24/7 challenge.  The American Banker recently highlighted the growing problem of telephone fraud at bank call centers – employees being conned into giving up critical customer information to criminals or changing account passwords.  Although the article focuses on call centers, the risk is also […]

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Creating a Roadmap to Navigate the New HMDA Rule

On Oct. 15, 2015, the Consumer Financial Protection Bureau (CFPB) issued its long-awaited final rule amending and expanding the mortgage loan application data reporting requirements under Regulation C and the Home Mortgage Disclosure Act (HMDA). It is critical for lenders who are subject to the final rule to begin compliance preparations now, before it goes […]

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What the 2014 HMDA Data Can Tell You About Your Exposure to HMDA Compliance Risk

The September release of the 2014 data submitted under the Home Mortgage Disclosure Act (HMDA) has several uses. In this article, we discuss the utility of these data in evaluating your institution’s exposure to HMDA compliance risk related to two data categories: government monitoring information and action type coding. By benchmarking your organization’s performance against […]

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Four More Common HMDA Reporting Errors and How to Mitigate Them

In a recent Knowledge Center post, we discussed four common errors that lenders encounter when satisfying reporting requirements under the Home Mortgage Disclosure Act (HMDA). The four errors that we reviewed – failing to capture all HMDA-reportable transactions, documenting an incorrect loan amount, assigning the wrong geographies via geocoding, and making errors in calculating the […]

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Four Common HMDA Reporting Errors and How to Mitigate Them

The Home Mortgage Disclosure Act (HMDA) requires covered institutions to make loan information available to the public. Regulators, examiners, academics, industry leaders, and members of the general public rely on these data to analyze the performance of mortgage lenders in achieving the goals established under the Equal Credit Opportunity Act (ECOA), the Fair Housing Act […]

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