Fair lending laws are designed to provide fair and equal access to credit, based on individual creditworthiness, without regard to a prohibited basis such as race, gender or national origin. In addition to satisfying legal requirements, fair lending compliance is good business practice and there can be major consequences for non-compliance.
Fair lending laws include the Equal Credit Opportunity Act (Regulation B), Home Mortgage Disclosure Act (Regulation C), and Fair Housing Act, 4 and financial institutions must comply with them.
RATA Associates, the leading provider of HMDA/CRA products and services to the lending compliance arena expanded into the Fair Lending market with the release of Comply Fair Lending in 2004. Comply Fair Lending is a robust software solution based on the FFIEC (Federal Financial Institutions Examination Council) and CFPB (Consumer Financial Protection Bureau) Fair Lending Examination Procedures and is the simplest and most cost effective way to monitor potential risk associated with lending performance.