When preparing to conduct a fair lending regression analysis, the first step is to determine the loan sample to be analyzed. This is usually accomplished by first selecting a particular loan product on which to focus and a time period.
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The Fed has increased interest rates 3 times now since December of 2015 resulting in an increase in the Fed Funds Rate of 75 basis points. As rates have been low for a long period of time, the spread between a bank’s cost of funds and the interest rates charged on loans has been […]
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A recent economic report from the New York Federal Reserve indicates that loan payment delinquencies for household debt reflected increases in the first quarter of 2017.
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As we have discussed in previous posts, fair lending regression analysis has become widely used for evaluation of lender practices. While a comprehensive discussion on the subject is unnecessary certainly beyond a blog post, it is important to understand limitations when such analyses are applied to such a critical issue as fair lending.
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A tension exists between a bank meeting its CRA obligations and compliance with other fair lending laws and regulations. This can sometimes present a bank with conflicting priorities.
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In the second installment of this two-part post, we provide some guidance concerning data for fair lending underwriting analysis in the community bank space.
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In Part 1 of this two-part post, we discuss some issues with conducting fair lending underwriting analysis for community banks: challenges which are becoming more acute with the regulatory emphasis on quantification.
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The Bureau of Labor Statistics has published an interesting study forecasting the future of the U.S. labor force over the next 50 years.
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The FDIC reported that net income of commercial banks and savings institutions increased by over 12% or $5 billon from the previous year. The increase was attributable to increases in both net interest income and non-interest income. Over one-half of the nation’s insured institutions reported year-over- year increases.
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For decades, banks and those of us who have been involved with regulatory compliance have objected to subjectivity that makes managing compliance matters difficult.
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