Fair Lending is all about awareness. This includes creating awareness for your lenders and maintaining that awareness over time. Lenders need to understand the black and white of what they can and/or can’t do when it comes to fair lending, but they also need to know about those gray areas that aren’t always so obvious. Many fair lending issues aren’t intentional or obvious; rather they result from actions or decisions that end up having a disparate impact on a prohibited basis. For example, a policy to not originate home loans for less than $50,000 could disproportionately exclude minority applicants who are lower-income or have lower-valued homes. This policy, in turn, has a disparate impact based on race.
Jerod explains more in the video.
Published
2024/09/16
