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Fair Housing and Fair Lending Policy Manual

Mortgage lenders and third party originators must comply with federal fair housing and fair lending laws that make it illegal to discriminate against creditworthy applicants on a prohibited basis.  Mortgage industry participants may be held liable under the disparate impact theory.  The disparate impact theory holds that policies which seem neutral and without discriminatory intent, may, in fact, be severely detrimental to a protected class or individual.  Disparate treatment occurs when creditors treat applicants overtly different based on a prohibited basis.  The Home Mortgage Disclosure Act, implemented under Regulation C, holds lenders and TPOs accountable for compliance with fair lending laws through the reporting of loan data, used to identify possible discriminatory lending patterns and which also helps determine if lenders are serving the housing needs of the communities.


Overview

The Fair Housing and Fair Lending policy manual, is designed to aid mortgage lenders and third-party originators in the development of policies integral to your compliance management system called for by the CFPB. This document summarizes fair housing and fair lending regulations and requirements; addresses disparate treatment and disparate impact theories, includes sample consumer notices; and provides simple tools to check for regulatory compliance.

Benefits

The Fair Housing and Fair Lending Policy Manual features the following benefits:

  • Identifies federal regulations surrounding fair housing and fair lending laws, including ECOA (Reg. B), FHAct, and HMDA – Reg. C
  • Defines key terms associated with each regulation
  • Outlines specific requirements covered in each law
  • Highlights penalties associated with noncompliance
  • Includes an Appendix with short checklists to assist in determining compliance with these regulations

Optional Services

Maintenance: Receive regular and ongoing industry updates to keep your policy within regulatory requirements.

Publishing: Publish your manual, including your company procedures, in AllRegs Online to complete your policy manual solution.

Contact your account manager for information regarding these optional services!

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