The federal financial regulatory agencies are expected to act against violations of consumer protection laws, particularly egregious ones, regardless of the current administration. To avoid fines and reputational harm, firms should ensure they do not fall into a “higher risk” category.
This CRA Insight analyzes the mortgage application activity to minorities using the 2024 Home Mortgage Disclosure Act (HMDA) data. The benchmark is the “average lender” (i.e., “market”) performance. The analysis determines whether an institution lends to minorities more or less than the market does, on average.
Analyzing application and lending data is not only a compliance or risk management task. It is also a strategic tool allowing a firm to assess its market position and to develop strategic plans such as product or geographic expansions.
