Commercial lenders likely discriminate every day. Their job is to slice and dice information about an applicant to determine if they are worthy of a loan. There are “legal” forms of discrimination, for example, deciding not to make a loan based on an applicant’s debt-to-income ratio, loan-to-value, etc. Then there are “illegal” forms of discrimination which are based on a prohibited basis such as race, sex, age, marital status, etc.
Jerod explains more in the video.
Video Highlights:
- Commercial lenders need to be aware of legal discrimination vs. illegal discrimination in the lending process.
- Potential consequences of not following fair lending regulations include referrals to the Department of Justice, lawsuits, and litigation, as well as reputational damage.
- Fair lending should be a major concern for Boards and Management Teams.
Published
2023/02/16
