During the first years of the Biden Administration it has become clear that enforcement of fair lending laws is a high priority. Enforcement actions are not limited to just one or two key issues, as outlined below, there is broad assault on fair lending issues. Of course there is an appropriate response in each area subject to regulatory action.
- What You’ll Learn
Redlining – A major spotlights has been placed on this issue. Recent cases, an announcement of DOJ’s Redlining Initiative, Consumer Financial Protection Bureau’s (CFPB) announcement regarding Digital Redlining, and business loan redlining are reviewed
- Gender Identity and Sexual Orientation – Major events include:
- The U.S. Supreme Court ruling in the case of Bostock v Clayton County, and
- The CFPB’s issuance of the Regulation B Interpretative rule
- Foreclosure Surge – Following the end of the pandemic-related foreclosure moratoriums the huge volume of foreclosures has been subject to intense regulatory scrutiny. The changes resulting from the CFPB’s Regulation X revisions that impacted the Mortgage Loan Servicing and Loss Mitigation rules are reviewed.
- Artificial Intelligence (AI) and machine learning models – Once viewed as the antidote to disparate treatment, bias has been detected in AI and machine learning models. On March 29, 2021 the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the CFPB, and the National Credit Union Administration (the agencies) issued a Request for Information (RFI) seeking information and comments on the use of artificial intelligence (AI) by financial institutions.
- Limited English Proficiency – This session reviews:
- Pronouncements from the Department of Housing and Urban Development (HUD) and the CFPB, and
- Enforcement actions
- Maternity Cases – After hundreds of cases were settled in recent years, the spotlight on this issue has dimmed, but the issue remains a concern.
- Targeted Advertising – The use of social media has become an important marketing tool for many providers of consumer financial services. Private lawsuits have been filed and focus on the intersection of targeted marketing and anti-discrimination laws. The status of regulatory activity and redlining claims related to targeted marketing are reviewed.
- Discrimination in Appraisals – Numerous anecdotes and one case outline the problem that results when appraisers are loose with the selection of comparables and adjustments made between the subject property and comparables.
- Data Collection and Reporting for Small Business Loans – Massive new regulations that require the collection and reporting of small business loan data are unfolding.
Who Should Attend
The program is designed for the Board of Directors, senior management, loan department management, compliance officers, loan officers, marketing officers, auditors, and others with responsibilities related to the marketing, origination and servicing of loans.