The preliminary 2022 HMDA data recently released by the CFPB is the first glimpse into aggregate lending distributions geographically based on the new 2020 Decennial Census data. Lenders were required last year to begin reporting census tracts based on the new Census. This is the first public release of this lending data for 2022. From […]
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Earlier this year, we highlighted 4 forthcoming critical events that banks should be ready for with regard to regulatory compliance risk. Things are moving quickly this year, with 2 of these already now in play. These are (1) the availability of preliminary public HMDA data reported by institutions for calendar 2022 and (2) the release […]
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The U.S. Economy rose 2.6% in the fourth quarter according to the BEA’s third and final estimate released March 30th. This latest estimate marked a slight downward revision from the previous fourth quarter estimate of 2.7% and a deceleration from the third quarter growth of 3.2% growth. Despite the two quarters of back-to-back above trend […]
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This week the CFPB released preliminary HMDA data for all lenders reported for calendar year 2022. These data are routinely updated each year after financial institutions have done their annual submission, which are due March 1st of each year. Although this release is an annual event, and has been taking place for decades, this year’s […]
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In the first post in our series on AI in lending, I began a conversation with ChatGPT, a so-called “large language model” of AI that’s made headlines recently. In that first part of the discussion, we covered 3 major benefits of AI in lending. In our second post in the series, we discussed the major […]
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The regulatory world in which financial companies operate is a vast sea of uncertainty that is seemingly in a constant state of churn. Although the laws and regulations themselves are not necessarily constantly changing, regulatory interpretation and shifting priorities, coupled with bifurcated and shifting agendas, create a sort of organized chaos. This makes compliance difficult, […]
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In recent posts, we have focused on redlining as one of the more prominent fair lending risks that institutions are facing today. The agencies have clearly made redlining a top priority, and recent fair lending enforcement actions have confirmed this. There is, however, more to the fair lending risk management story. The Many Facets of […]
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In our first post in this series, we introduced the concept of AI in lending and examined the first part of my conversation on the subject with ChatGPT – a so-called “large language model” AI that has made recent headlines. After a general introduction to the idea, I asked ChatGPT about the benefits of AI […]
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As lenders face increasing scrutiny from the regulatory and enforcement agencies with regard to fair lending in general, and redlining in particular, institutions are searching for ways to mitigate these risks. Why Correcting a Problem is So Hard Fair lending risk management now demands a data-centered strategy, as the focal point of a redlining examination, […]
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Artificial Intelligence, or AI (also referred to as “machine learning”), is here to stay. The financial industry is already inundated with companies offering solutions ranging from underwriting models that consider more than a thousand different data points on each loan application to pricing models that maximize profit while reducing risk to AI-driven audio, video, and […]
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