About Fair Lending

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.

What are fair lending laws?

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.

• Equal Credit Opportunity Act prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships, and trusts.
• Home Mortgage Disclosure Act (HMDA) requires financial institutions meeting certain reporting requirements to compile and disclose loan application data for home purchase loans, home improvement loans, and refinancings that they originate or purchase.
• Fair Housing Act prohibits discrimination in all aspects of residential, real-estate related transactions, including but not limited to: making loans to buy, build, repair or improve a dwelling; purchasing real estate loans; selling, brokering, or appraising residential real estate; and, selling or renting a dwelling.

Learn more about Fair Lending laws and regulations.

How can RATA Associates help?

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.

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