Big Picture
Maintaining accurate and timely fair lending reporting is critical for financial institutions of all sizes. The Fair Housing Act (FHA) prohibits discrimination in housing finance. The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction. The Consumer Financial Protection Bureau’s Regulation B (12 CFR part 1002) implements the ECOA and delineates lending acts and practices that are specifically prohibited.
Client Scenario
A mid-sized bank specializing in large corporations and institutional clients recognized the need for reliable fair lending reporting. They sought a solution that utilized analytics to assess potential risks based on current practices. However, the bank lacked the internal resources to implement such an advanced analytics program.
Asurity Solutions
Asurity Advisors partnered with the bank to develop a comprehensive risk management solution leveraging analytics. Through collaborative working sessions, Asurity Advisors clearly defined the bank’s specific reporting requirements and determined that customized Monthly Cadence Gap & Trending Analysis Reports was the best approach to provide line of sight into performance across numerous markets. Additionally, the bank opted to include Asurity’s Quarterly and Annually Fair Lending & Executive Summary Reports, which delivers a comprehensive analysis of fair lending performance across multiple markets, as well as broker performance assessments to further support regulatory compliance and responsible lending practices. By entrusting Asurity Advisors to augment the bank’s internal resources, the bank could better focus on core business activities and make deliberate and informed decisions.