It’s no secret that the regulatory compliance burden for commercial loans is often much less than for consumer loans. This increases the risk that a commercial lender may assume a regulation doesn't apply when it actually does. The truth is that, while fewer regulations may apply to commercial loans, those that do apply are pretty important. Flood insurance, Equal Credit Opportunity Act (which includes fair lending) and HMDA are a few that come to mind. The risks associated with non-compliance are high and can lead to civil money penalties, Department of Justice referrals and more.
Kevin touches on the importance of fair lending in the video.
Published 2026/03/02