In this podcast episode, Dean and Len delve into pivotal questions concerning regulatory compliance in the banking sector. Len highlights the two primary questions every compliance and risk officer should ponder: whether their lending performance meets the expectations of examiners and if the performance is statistically significant.
The conversation comes against the backdrop of changes to the Community Reinvestment Act (CRA) Rule and the Department of Justice's recent focus on the "Anti-Redlining Initiative." Len breaks down the proposed CRA rule, emphasizing performance benchmarks and their significance for banks to ascertain their ratings even before official examinations.
Transitioning to Fair Lending and redlining, the duo discusses the intricacies of "statistical significance" and how it gauges a bank's performance, especially when lending in majority-minority tracts. Despite the challenges, Len elucidates that unfavorable results don't automatically doom a bank. Factors like defining the market accurately and valid explanations for performance trends play a role.
Both Dean and Len underscore the episode's timeliness, given the prevailing regulatory atmosphere. They hope listeners find the complex topic both engaging and enlightening.
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The Texas Court’s Preliminary Injunction Against the 2023 Rule
Climate Risk, the emerging risk
How to estimate how your performance will look under the new CRA
2024 Regulatory Hot Topics
Electronic Funds Transfers-The Investigation Process
The Coming Perfect Storm
The New CRA II - Retail Lending Test
ECOA Credit Denial and the use of AI
The New CRA - I
Reg. CC-Funds Availability, it ’s a good time to revisit the hold provisions and timing for Reg. CC.
The Importance of Assessment Areas
Electronic Funds Transfers-The Basics
What’s behind the increase in CRA Exam failures?
Electronic Funds Transfers-what you need to know when using cash applications such as Venmo
Keeping up with all the new regulations
Combatting Redlining Initiative
Artificial Intelligence (AI) and Banking
Unveiling the Implications: How Section 1071 Reshapes Community Reinvestment Act Reporting
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