Anti-Predatory Lending Policy Manual
Fair Lending is a topic that requires continued attention in the mortgage industry. Various federal regulations impose anti-predatory and fair lending requirements and many state laws require mortgage organizations to prove tangible net benefits to the borrower. As a course of business, lenders should have a plan in place for adhering to Fair Lending laws and their own internal policies.
Need to get your plan in place? AllRegs can help.
Our Anti-Predatory Lending Policy Manual covers the Ability to Repay (ATR) requirements of Dodd-Frank, Fair Lending/Net Tangible Benefits, guidance for agency compliance, and much more! You can take our plan and run with it; it is ready for implementation to support your company's needs for a fair lending plan.
The Anti-Predatory Lending Policy Manual is considered a core element of a company's operational business plan and applies to all residential mortgage transactions and the full scope of products, property types, and geographic locations. The policy impacts all employees on an interdepartmental level and it applies to both retail and third-party origination business platforms and all service delivery channels including, but not limited to, in-person applications, telephone applications, web-based applications, and mail applications.In addition to supporting your company in meeting your Fair Lending policy requirements, the Anti-Predatory Lending Policy Manual can support compliance with requirements of the Equal Credit Opportunity Act (ECOA), Fair Housing Act (FHAct), Fair Credit Reporting Act (FCRA), Home Owners Equity Protection Act (HOEPA), Flood Disaster Protection Act, Home Mortgage Disclosure Act (HMDA), Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TIL) and the Fair and Accurate Credit Transactions Act (FACTA). Requirements to have such policies in effect are mandated by the following agencies, federal offices, and entities:
- Consumer Financial Protection Bureau
- Fannie Mae
- Freddie Mac
- Ginnie Mae
The Anti-Predatory Lending Policy Manual is a complete AllRegs Policy Manual. Plus, it includes checklists for monitoring and assessment. Order yours today!
The Anti-Predatory Lending Policy Manual features the following benefits:
- Supports strong operational preparedness
- Establishes staff training requirements
- Defines roles and responsibilities
- Helps meet regulatory and internal compliance requirements
- Allows policy revisions to fit your business model
- Delivered via email within one business day
- Complete sections devoted to Borrower Ability to Repay and Net Tangible Benefit
- Includes checklists for loan production, approved loans, and non-closed loans
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!
|1.1||Goals and Objectives||Mandatory Review||Include the point of view or culture of your organization in this section, if applicable.|
|1.2||Required Review||Mandatory Review||Be sure this accurately reflects your company’s annual policy review process.|
|2.1||Internal Controls||Mandatory Review||Include or reference related procedures in this section.|
|3||Staff and Training||Mandatory Review||Include the means by which your organization provides and tracks required training.|
|4||Commitment to Responsible Lending||Recommended Best Practice||Modify this section to include the point of view or culture of your organization with respect to fair and responsible lending.|
|4.3||Credit Scoring Models||Optional Enhancement||This section contains requirements for the periodic review of models and scorecards related to risk-based pricing. Lenders not engaged in risk-based pricing may want to amend or delete this requirement.|
|5||Borrower Ability to Repay (ATR)||Mandatory Review||Ensure this accurately reflects your organization’s implementation of ATR.|
|6||Tangible Net Benefit||Mandatory Review||Include the process used in your organization when determining if a transaction provides a benefit to the borrower.|
|7||Underwriting and Service Standards||Mandatory Review||This section addresses underwriting and disposition as it relates to ECOA and should align with your consumer complaint policy.|
|7.4||Withdrawn Applicants||Recommended Best Practice||Confirm this aligns with your process when issuing a Notice of Action Taken in response to an applicant withdraw request.|
|8||Agency and Regulatory Requirements||Optional Enhancement||Consider any additional requirements required of your organization by the agencies.|