By Edward Kramer, Executive VP, Regulatory Programs
The Department of Justice has placed renewed emphasis on fair lending enforcement. In addition to the two recent DOJ cases involving alleged fair lending violations in the areas of mortgage and auto lending, recent activity of the DOJ is sending a crystal clear message on the direction of their fair lending enforcement activity. Areas to watch include:
- Open investigations: There are 38 open DOJ investigations into accusations of lending discrimination.
- Loan modifications: The DOJ requested Treasury department data on loan modifications which they intend to review for signs of any disparate impact on minorities.
- New DOJ Unit: The DOJ recently created a new unit to focus on unfair lending practices – and is hiring at least four lawyers and an economist for the new unit, while about half a dozen current staff members will transfer into it.
What does this mean for your fair lending risk containment and compliance strategy? Join us on Tuesday, March 16 for a free webcast, Recent DOJ Settlements Signal Tougher Fair Lending Enforcement, click here to register. We’ll analyze those decisions for recommendations on possible preventative measure to take when analyzing fair lending data.
