Fair Lending

Lessons From the Recent Washington Federal Bank HMDA Settlement

Download This Article The recent settlement between Washington Federal Bank and the Consumer Finance Protection Bureau of reporting violations under the Home Mortgage Disclosure Act (HMDA) demonstrates that mortgage lenders should maintain a high level of focus on their compliance management system. In this article, we compare the bank’s earliest and most recent 2017 HMDA submissions to uncover the likely sources of [...]

January 12th, 2021|

CFPB Releases Outline of Small Business Data Collection Rulemaking

On September 15th, the Consumer Financial Protection Bureau (CFPB) released an Outline of Proposals Under Consideration for a small business lending data collection and reporting rulemaking pursuant to Section 1071 of the Dodd-Frank Act.  Section 1071 amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect certain data regarding applications for credit for women-owned, [...]

September 21st, 2020|

Key Insights from the Townstone Financial Redlining Complaint

Download This Article In a recent Complaint filed by the Consumer Financial Protection Bureau (CFPB) against Townstone Financial, Inc. (Townstone), the CFPB alleges that Townstone violated Fair Lending laws by redlining certain geographic areas. The Bureau also asserts that Townstone engaged in practices that discouraged, on the basis of race, potential applicants living in or [...]

July 28th, 2020|

NAR and Quicken Loans ask HUD to Withdraw Proposed Amendments to Fair Housing Act

In recent days, both Quicken Loans, the nation’s largest lender, and The National Association of Realtors (NAR), the nations’ largest trade organization, have called on the Department of Housing and Urban Development (HUD) to withdraw its proposed rule to amend the HUD interpretation of the Fair Housing Act’s disparate impact standard. Bill Emerson, vice chairman of Quicken Loans, [...]

July 15th, 2020|

OCC Releases Semiannual Risk Perspective – Warns of Covid-19 Related Increased Risk

On June 29th, the Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective report, finding that due to the current COVID-19 pandemic will stress institutions' financial performance this year. The report also said that compliance risk is on the rise, in part because of federal programs related to the CARES Act and [...]

July 2nd, 2020|

Compliance in the Era of COVID-19: Managing Risk While Meeting Consumer Needs

Lending institutions play a unique and vital role in helping consumers and businesses recover from heavy economic hardships during the COVID-19 pandemic. Businesses are affected by the pandemic in differing ways:  for some it means a slight reprieve in activity and possible opportunity to implement system improvements. For lenders, however, it often necessitates rapidly processing [...]

June 1st, 2020|

Santander Agrees to Pay $550M to Settle Auto-Lending Lawsuit

Last week, Santander Consumer USA Holdings, which is part of Santander Bank, settled with 33 states and the District of Columbia through payments of $550 million. The settlement was the culmination of its long-standing effort to resolve compliance problems that arose six to ten years ago, from 2010 to 2014.  Broadly, the accusation was that [...]

May 26th, 2020|

CFPB Highlights Importance of Fair Lending for Minority and Women-Owned Businesses

On April 27, 2020, the Consumer Financial Protection Bureau (CFPB) released a blog post about Fair Lending to minority and women-owned businesses. The blog entry explains the purpose of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and Small Business Administration’s Paycheck Protection Program (PPP). These loans are designed to allow small businesses to [...]

May 6th, 2020|

Ramping up, rather than letting up on compliance during COVID-19

  Banking regulators are temporarily reducing their examination schedules. At first glance, this reduction may seem to indicate that it is appropriate to ditch your compliance hat until the current quarantine period is behind us. Hold on to that hat though – while the examination schedule is delayed, regulatory requirements continue, and this new environment [...]

April 28th, 2020|

New White Paper Urges CFPB Action to Address Pandemic

On April 6, 2020, a white paper on the effects of the coronavirus pandemic was published publicly and addressed to the current director of the Consumer Financial Protection Bureau (CFPB, the Bureau),  Kathleen Kraninger. This white paper – authored by Richard Cordray (former CFPB director), Diane Thompson (former CFPB deputy assistant director of regulations) and [...]

April 7th, 2020|