Compliance & Regulation

Agencies supervising lenders should make it clear that the transition to less discriminatory algorithms won’t be used to punish banks for their previous use of older, less effective systems.

The two megabanks said that their capital requirements will rise in the wake of Federal Reserve stress tests, putting downward pressure on their distributions to shareholders. Meanwhile, Bank of America, Wells Fargo, Goldman Sachs and others announced plans to raise their dividends.

The accord resolves a lawsuit by the U.S. Department of Housing and Urban Development alleging that the algorithms used in Meta’s advertising systems allowed marketers to violate fair housing laws by limiting or blocking certain groups of people from seeing housing ads on the service. 

The CRA has failed to reduce anti-Black racial discrimination in financial services, to lower poverty or to lessen environmental destruction.

The Federal Housing Finance Agency also noted limits to its authority in efforts to free the government-sponsored enterprises from conservatorship in its report to Congress.

While the appeal of homeownership and larger spaces led property values in many fire-prone regions to surge to new records, those areas are also seeing more frequent price drops, Redfin says.

Secret test scenarios last year found a loan originator providing fewer options and services on multiple occasions to Black borrowers compared to white customers.

The Federal Housing Finance Agency has indicated that lenders will be required to demonstrate policies addressing the risk on business.

The central bank has a long history of diluting the effectiveness of the Community Reinvestment Act.

The Consumer Financial Protection Bureau filed more actions against redlining and discriminatory practices in 2021 and is skeptical that that predictive analytics will reduce bias.