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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A Very Serious and Growing CRA Assessment Area Problem
Enterprise Risk Management
CRA Tips and Tricks for Intermediate-Small Banks
Overview of Flood Insurance Requirements
CRA Mistakes
Fair Lending and Commercial Applications
Assessment Area delineation your most important CRA decision
Fair Lending in 2021
What Community Development really means under CRA
National Defense Act impacts on BSA/AML
The Pandemic and CRA
Compliance Management Systems and COVID
Major changes contained in the Federal Reserve Board's Advanced Notice of Proposed Rule-Making regarding the Community Reinvestment Act.
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