On September 26, 2018, United States Senator Elizabeth Warren (D-Mass.) introduced the American Housing and Economic Mobility Act. Among other things, the legislation expands the scope of the Community Reinvestment Act (CRA), grants $500 billion in subsidies to homeowners and investments in low-income housing projects.
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Banking regulations contain a degree of subjectivity. Regulations are broad and pertain to the entire industry, but institutions can vary significantly in operations and size even within the subsets of rules that apply to each. Practically speaking, this often leaves the examination process subject to interpretation in terms of what is compliant and what is not.
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We have discussed the essentials of CECL in a previous post in which we explained the new requirements. Below we show a simple path toward CECL compliance which may serve as a catalyst toward more refined and robust methods.
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In response to an executive order signed by President Trump on February 3, 2017, the U.S. Department of the Treasury released a series of reports. These reports identify government policies that promote or inhibit regulation of the U.S. financial system in a manner consistent with the administration’s stated Core Principles. The most recent of these reports, […]
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Fair Lending laws and regulations prohibit discrimination on prohibited bases, including race, gender, age and ethnicity.
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Initially published in 1993, the FDIC Consumer News newsletter is celebrating 25 years of publication.
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In our last post, we discussed the importance of understanding both what is and what is not included in the data for regression analysis. In this post, we further emphasize this point with an illustration relevant to a common CECL methodology – the probability of default/loss given default method (PD/LGD).
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