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Notes on the 2016 HMDA Data and the Avalanche of Data to Come

Things are getting very interesting on the HMDA data front. Near the end of September 2017, the 2016 public HMDA data was released. By April 1, 2018, the 2017 national HMDA database will be made public. A year after that,, the 2018 expanded HMDA data are expected to be released. …

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Fair Lending 2.0: Now What?

Fair Lending 2.0: You’ve Built Your Basic Fair Lending Program, Now What? How to Take Your Fair Lending Program to the Next Level Without Breaking the Bank By Nima J. Vahdat So, you’ve bought your off-the-shelf fair lending training, did a find-and-replace on that downloadable fair lending policy you just …

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Fair Lending Conundrum: Can Capturing Too Much Data Cause Fair Lending Violations?

By Alan Bercovitz All businesses are increasingly driven by data, perhaps none more so than the mortgage industry. The operational challenge for lenders is to efficiently capture, retrieve, and organize the flow of data throughout the mortgage production cycle, from origination, processing, underwriting, closing, post closing, sale, and on to …

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Bureau Makes Proposal for Public Disclosure of Expanded HMDA Data in 2019

On September 20, 2017, the CFPB published the long-awaited guidance on what loan-level data the bureau proposes to make public in 2019. Although a great deal more information will be disclosed to the public in the new expanded LAR format, the bureau exercised caution by using a balancing test to …

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Fair Lending Myths

I’ve attended many panels, workshops, and conferences on fair lending. All too frequently at these events, I hear someone from the audience or even a panelist declare a “fair lending myth.” A fair lending myth is a statement about regulatory enforcement that sounds reasonable on the surface but does not …

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What’s the Point of Fair Lending Monitoring?

In my experience, there are more lenders who do little to nothing to monitor fair lending than those who actively manage it. Those that do less tend to be independent mortgage companies rather than depository institutions. I believe there are several reasons for this outcome: A) Culture and Traditions: Prior …

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Fair Lending Enforcement in the First 100 Days of the Trump Administration

By Paul Hancock & Olivia Kelman The Obama administration prioritized an aggressive, and at times novel, approach to enforcement of the federal fair lending laws—an approach that relied heavily, and at times solely, on statistics to establish liability for lending discrimination. Nowhere was this emphasis more prevalent than in matters …

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What New HMDA Data Points May be Modified before Release to the Public?

The CFPB’s final rule on HMDA (Regulation C) requires lenders to collect, record, and report information on 48 data points, of which 25 are new and 23 existing. For over 25 years, the Federal Financial Institutions Examination Council (FFIEC) also has annually released a transaction-level database of all the submitted …

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