1. The Department of Justice (DOJ) is continuing to find cases of lenders steering minority borrowers into higher cost loans three years after the agency forced several large banks into landmark settlements, cracking down on the practice. A top official from the DOJ’s civil rights division recently opined that there are still lenders who are steering minority borrowers to particular loan officers or to certain brokers who they know will charge these borrowers more. This DOJ representative also noted that another “old nemesis” is making a comeback— redlining— the practice of lenders charging more for products, or excluding altogether minorities within certain geographic areas. Allow our federally trained, compliance specialists to review your institution’s Fair Lending program to determine its efficacy in addressing this and other critical areas of your bank’s compliance management and review system.
Sep 20
