A Fair Look at Fair Lending
Probably the most subjective area of the regulatory world is fair lending. The rules in this area are extremely vague and can often be subject to broad interpretation. It’s also possible to get significantly different examination results depending upon the perceptions of your particular examiner.
So how do you know the efforts you’re taking to comply with fair lending regulations will stand up to an objective examiner review? PKM’s fair lending procedures are built on this very premise. As part of our process, we interview loan officers to assess their understanding of fair lending regulations and your institution’s specific procedures. In addition to testing denied applicants against approved applicants for similar loan types, we also review lending data for potential discriminatory patterns. We assess the inclusiveness of your marketing activities and ensure the right personnel are getting the right amount of fair lending training.
Strong Businesses and Communities Start with Fair Lending Regulations
The essence of fair lending regulations is to ensure all segments of the community have a fair opportunity at receiving similar loan products and terms. We all work for supporting strong communities and fair lending is the foundation for providing that support.
At PKM, our regulatory compliance services and our approach to fair lending help minimize the subjectivity surrounding your fair lending process and allow you to engage in lending activity that can stand up to regulatory scrutiny in the long term.