Home / News / Government / Wolters Kluwer Addresses Intensified Scrutiny of Fair Lending Practices
Print This Post Print This Post

Wolters Kluwer Addresses Intensified Scrutiny of Fair Lending Practices

Minneapolis-based ""Wolters Kluwer Financial Services"":http://www.wolterskluwerfs.com announced this week that the company's Fair Lending _Wiz_ software now includes an Ethnicity Proxy functionality.

[IMAGE]

The company explained that the enhancement allows financial institutions to make a determination of whether or not a loan applicant is Hispanic when this race information is not available in the loan file. The new feature extends the Fair Lending _Wiz_ solution's ability to provide gender and minority proxies. These proxies help improve the quality of Home Mortgage Disclosure Act (HMDA) loan data to detect potential problems that may contribute to discriminatory loans, Wolters Kluwer said.

Underwriting fair and non-discriminatory loans is more important for financial services organizations than ever before. In a speech to The Brookings Institution on June 23, Thomas E. Perez, assistant attorney general for the Department of Justice's Civil Rights Division, said his agency is investigating 18 lenders for potential fair lending violations.

[COLUMN_BREAK]

Perez also noted that the Justice Department is collaborating with HUD to ensure Federal Housing Administration (FHA) loans are free of predatory and discriminatory lending practices. And he said the DOJ is working with states' attorneys general on a more widespread basis to provide support to their investigations of fair lending violations.

Wolters Kluwer Financial Services says its Fair Lending _Wiz_ software helps lenders effectively monitor against a variety of potential fair lending concerns, including redlining, reverse redlining, steering, disparate treatment, and disparate impact.

The solution can help mortgage firms comply with fair lending requirements on loans that are originated directly or through third-party channels. The solution provides institutions with analytical tools that allow them to identify potential risks and take corrective action to remedy unfair lending practices, Wolters Kluwer said.

""We continue to strengthen our Fair Lending _Wiz_ solution to help our customers address regulators' intensified scrutiny of their lending practices,"" said Heather Czermak, chief product manager for Wolters Kluwer Financial Services' Consumer Compliance business. ""A perfect example is the solution's advanced analysis capabilities that help lenders effectively identify potential compliance problems that could result in disparate treatment.""

Czermak added that the current administration's focus on this more challenging method of fair lending analysis, in addition to other fair lending concerns, makes it an area of compliance lenders need to address thoroughly.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
x

Check Also

HUD Grants $150M to Tribal Communities for New, Affordable Housing

“Strong investments in Tribal communities help ensure residents can access much-needed safe and affordable housing,” said Secretary Marcia L. Fudge. “The funds HUD is making available will meet the challenges of today and allow Tribal communities to make innovative and vital advancements needed to prepare for the future."