A comprehensive product analysis of Home Mortgage Disclosure Act (HMDA) lending and housing credit needs can be a crucial component of a bank’s compliance and fair lending risk management program. Such an analysis can address redlining concerns related to minority geographies and the race and ethnicity of borrowers, as well as Community Reinvestment Act (CRA) […]
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In the late 1990’s and early 2000s, fair lending regulatory examinations experienced a dramatic change. This shift was marked by the introduction of statistical approaches to fair lending analysis by regulatory agencies. Prior to this, fair lending reviews involved manual data file reviews, which were imprecise and labor-intensive. The agencies started using regression and statistics […]
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Is your financial institution looking to expand? Identifying the right markets is crucial for success. This example guide, based on a real-world case study prepared by Premier Insights, provides a step-by-step approach to market analysis, empowering you to make informed decisions about your bank’s future and capitalize on growth opportunities. Step 1: Define Your Goals […]
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Fair lending laws and regulations were designed to ensure that all consumers have an equal opportunity to access credit. An FDIC fair lending examination is conducted to evaluate an institution’s compliance with these laws and regulations. This blog post will provide an overview of some of what to expect during an FDIC fair lending examination, […]
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The FDIC’s “Quarterly Banking Profile” for the fourth quarter of 2024 reveals the financial performance and condition of FDIC-insured institutions. The report indicates the banking industry experienced strong earnings and increased domestic deposit growth during the year. Asset quality metrics generally remained favorable, even with some weakness in specific loan portfolios like non-owner occupied commercial real estate. While […]
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Lenders, especially those dealing with HMDA reportable loans, face an uncertain regulatory landscape due to the recent shake-up at the Consumer Financial Protection Bureau (CFPB). To navigate this period, Premier Insights encourages clients to stay informed and proactive. Drawing on insights from the October Research webinar, “CFPB’s Shake-Up & It’s Impact on You” and from […]
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With respect to fair lending scrutiny, redlining remains a critical concern for financial institutions. While data analysis is essential, a comprehensive understanding of redlining risk requires banks to look beyond the numbers. “Telling your bank’s story” involves proactively assessing policies, practices, and community context to ensure effective management of fair lending risk. Redlining, a form […]
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In today’s complex regulatory environment, financial institutions face increasing scrutiny and risk. This is especially true in areas like fair lending. To navigate this successfully, it is crucial to adopt a data-driven approach, combined with strong collaborative relationships. This post explores key strategies for mitigating risk based a collaborative approach. The Power of Understanding The […]
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Preparing for an upcoming fair lending examination can be stressful and time consuming. One of the main challenges is knowing what to focus on and how examiners may approach the examination. Each exam can be different, with a number of factors influencing an examiner’s approach, expectations, and focal points. Below is a quick, broad checklist […]
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During a recent speech, Federal Reserve Board Governor Michelle Bowman addressed new approaches toward bank regulatory policies. These policies seem to adopt a more conciliatory tone towards banks. Below are the key points. The full speech can be found online here:https://www.federalreserve.gov/newsevents/speech/bowman20250109a.htm
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