A lot has been said about machine learning and artificial intelligence (AI) regarding the sweet rewards they will bring to the mortgage industry but understanding the potential can be tricky to navigate. Before we get into dispelling the tricks or treats of some popular urban legends, here are a few quick definitions of AI and machine learning for context. AI…
Automation provides a wealth of benefit to any manual process, inlcuding speed (file reviews in under 5 minutes), accuracy (99% for data validation) and traceability (audit trail of defects), to name a few. But, in the case of HMDA, lenders are often surprised to find that it brings three unique value-adds to their reporting process. Automation can eliminate “check the…
Unfortunately, Wells Fargo is back in the news. They are back this time on the wrong side of a suit brought by the City of Philadelphia. The City is going after Wells for discriminating against minority borrowers in their mortgage lending. They claim Wells charged higher rates to Black and Latino borrowers for their loans as compared to what they…
The DOJ strikes again. JPMorgan Chase is paying $55 million to settle a lawsuit accusing it of discrimination in their mortgage lending practices. (DOJ Fine) According to the complaint filed by the US Department of Justice, Chase allowed Brokers originating loans for them to charge minority borrowers higher rates than rates charged to white borrowers. Chase did not directly charge…
The Department of Justice (DOJ) is awaiting court approval for a settlement agreement with Sage Bank of Lowell Mass., to the tune of almost $1.2 million. Sweet music to the DOJ. This action was brought about for alleged discrimination in lending to minority home buyers or owners. The alleged discriminatory lending practices were brought to DOJ’s attention under a referral…
Let’s not let the facts get in the way of a good legal action. That seems to be the mantra of the current Administration when it comes to having HUD take action against lenders for what they believe is “disparate impact” in their lending practices (Abuses). According to the National Fair Housing Alliance, “Disparate Impact” is a legal doctrine under…
