Compliance requirements are ever-changing, and it’s crucial for banking, lending, and other financial institutions to not only stay up to date with the latest regulatory updates and changes, but also have access to a comprehensive — and flexible — regulatory compliance analytics platform. Regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB) and Federal Housing Finance Agency (FHFA), continually assess existing laws and requirements and update them as needed to help protect the rights of borrowers and ensure that lending organizations are engaging in fair lending and servicing practices. The CFPB’s recent Notice of Proposed Rulemaking (NPRM) to implement Section 1071 of the Dodd-Frank Act is one example of a regulatory change that will impact the compliance strategies of financial institutions of all sizes.
Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act (ECOA) and will affect the way financial institutions collect and report data on small business credit applications. The proposed regulation will require lenders to provide regulatory agencies with “protected demographic information.” This includes specific loan data, including race, sex, and ethnicity of the business’s principal borrwers, as well as whether the business is women-owned or minority-owned.
The small businesses at the center of the proposed regulation are an important part of the economy, and the implementation of Section 1071 aims to create more transparency about the way financial institutions interact with them to ensure fair practices are being followed. Of course, more regulation means more data collection and analysis, which can be difficult to implement and follow appropriately. Fortunately, Asurity’s fair lending and compliance solutions can help you take the complexity out of reviewing data and analyzing compliance analytics so that the newly requested data can be submitted without putting additional strain on your business.
As our team of experts at Asurity is reviewing the impact of the proposed rule on our clients, rest assured we are actively engaged with the CFPB regarding the 1071 proposed rule and technical implementation thereof..
With constantly changing regulatory requirements, a comprehensive compliance reporting and analysis platform is becoming more and more vital to achieving compliance. In fact, our leading compliance platform, RiskExec, is purposely built for flexibility and scalability to manage changes in regulations. RiskExec’s robust analytical suite features easy-to-use model and analysis customization, flexible data transfer, and intuitive reporting systems, which make it easy to get the answers you need and be confident during examination. And, as the rules change, our team of experts works on adjusting the software rules to ensure that you are in lockstep compliance.
Asurity’s RiskExec helps to ensure compliance with regulatory requirements as they get implemented in real-time:
The financial industry will continue to be impacted by new regulatory developments and advances; don’t let an outdated analytics solution hold you back from achieving complete compliance. Adopting new practices is often difficult and labor-intensive, but it’s necessary to ensure fairness and ethical practices. Small business lending data collection is starting soon, and it will be more complicated for most institutions than HMDA ever was, as it combines more systems that are less prepared for these changes. Asurity’s RiskExec platform can alleviate the inherent burden by giving you the flexibility to react quickly to new compliance requirements without putting strain on your business. For information about how RiskExec can help you stay up to date with real-time regulatory compliance, get in touch with an expert at Asurity.
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