MCLEAN, Va.—NCUA said it has selected a suite of specialized software products from ComplianceTech’s to complete onsite and offsite fair lending examinations and perform offsite monitoring of approximately 1,700 reporting credit unions under the Home Mortgage Disclosure Act (HMDA).
Among the solutions provided by the company are LendingPatterns, Fair Lending Magic, Fair Servicing, and HMDA Ready.
“We are thrilled that the NCUA, as well as others in the regulatory community, have chosen ComplianceTech for it’s fair lending software needs,” said Michael Taliefero, managing director of ComplianceTech. “We are pleased we can help credit union examiners, through technology, to increase efficiency and better understand credit union lending behavior as it relates to compliance with the Equal Credit Opportunity Act (ECOA). I believe the whole credit union industry benefits from NCUA’s use of our technology driven approach to fair lending scoping and statistical analysis. Better technology reduces the chance of false positives unsupported by the data. I also believe the pandemic has taught us that with the right SaaS technology incredibly detailed fair lending exams can effectively be done remotely.”
Data Mining Tool
According to the company, LendingPatterns is a web-based data mining and analytical tool that uses public and private Home Mortgage Disclosure Act (HMDA) data to analyze loan applications for every lender required to report HMDA data. The company said it believes LendingPatterns’ uniqueness lies in the design of reports by industry experts to identify potential areas of fair lending opportunity and risk related to underwriting, pricing, and potential redlining.
ComplianceTech said its Fair Lending Magic solution takes a deeper dive into fair lending risk analysis for mortgage, consumer, and small business lending.
“It quickly and efficiently conducts statistical evaluations that lead to effective mitigation of fair lending and other compliance risks using robust regression and other methods, such as matched pair analysis, outlier studies and overrides/exceptions reports,” the company said. “Fair Lending Magic includes a geocode engine with robust proxy methodologies, including BISG, for application to non-mortgage loans.”
Other Solutions
In addition, ComplianceTech said of its other solutions:
- Fair Servicing extends the FLM platform to uncover potential ECOA/Fair Housing Act (FH Act) servicing risks that grow out of loss mitigation activities, the company explained.
- HMDA Ready, recently added to the ComplianceTech Suite, is used to prepare for and submit a HMDA loan application register (LAR). It can be used in HMDA scrubs/audits by regulators to investigate the integrity of the Compliance Management System (CMS) at the start of an exam. Lenders also benefit through HMDA data validation, industry benchmarking, and the identification of problematic data outliers before submission to regulatory authorities or self-monitoring analysis, ComplianceTech said.
For additional info: www.compliancetech.com.