Understand the Impact of Redlining: The Practice of Denying Financial Services to Certain Neighborhoods
As a Mortgage Loan Originator or anyone who manages or directs an MLO in the course of business, have you ever heard/said the following or anything similar to the these statements in regards to limiting neighborhoods access to financial services?
"I don't touch loans under a certain amount...why should I, they are just as much work as a larger loan and I don't make enough to deal with them"
"Loans under $(x) aren't worth my time"
"I have a minimum loan amount and I won't do anything under $(x)
"I don't originate mortgage loans in that area"
These statements or mindsets inside your organization are a direct violation of Fair Lending Laws, specifically under HMDA Reg-C and ECOA and are considered to be Redlining which whether intentional or not, could lead to racial discrimination and ethnic composition issues for your financial services company/
You must eliminate this from your organization!
As a Bank, Non-Bank Lender or Broker, REDLINING Definitely Applies To You And Your Origination Staff
Failure To Properly Train And Develop Staff On This Important Topic Annually Will Cost You In An Audit
If you are looking for a way to align your compliance management plan and origination staff awareness, then you need this course. Its available now as an online, on demand non bank lender redlining training course and is a must have for ALL of your staff as proof that your organization is taking this matter seriously!
The course is broken into 2 separate modules and covers the following topics:
>What is Redlining
>How History Shaped the current environment
>What Laws Govern Redlining
>Identifying a pattern or practice of discrimination
>Types of Discrimination in lending
>Does Redlining really apply to Non-Bank Entities
>What is (REMA)Reasonably Expected Market Area and (MSA) Metropolitan Statistical Area
>Self Testing
>The importance of cultural shift
>The importance of community outreach in under-served areas
>Leverage
Course comes complete with a comprehensive review as well as a Completion Certificate for employee files in the face of an audit.
Feel free to call us at 317-566-0425
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