Redlining and Fair Lending: Why Credit Unions Can't Let Their Guard Down

Imagine a world where nobody's watching. Would you still do the right thing? This thought-provoking question lies at the heart of our enlightening conversation with Jon Seward, former Department of Justice fair lending enforcement leader and current Of Counsel with Mitchell Sanders.Drawing from over two decades of experience as the architect of the DOJ's combating redlining initiative, Jon delivers a powerful warning to credit unions that might be tempted to relax their fair lending compliance efforts during the current administration: the regulatory pendulum always swings back. "When the feds are back in the picture, they're going to be looking at what we do now," Jon emphasizes, explaining that future enforcement actions will examine years of data spanning multiple administrations. Credit unions that maintain strong fair lending practices even without federal scrutiny will be better positioned than those that took their "foot off the compliance pedal."Looking toward future enforcement priorities, Jon predicts increased focus on underwriting disparities, particularly regarding assistance provided to marginally qualified borrowers across different demographic groups. He also provides practical guidance on automated underwriting systems and manual override practices.For credit union mortgage lenders navigating this complex regulatory environment, the message resonates clearly: maintaining robust fair lending compliance isn't just about avoiding problems, it's about serving communities effectively, building a stronger business, and remembering that behind every statistic is a real person whose life is impacted by these decisions.How is your credit union maintaining fair lending practices when nobody's watching? Join the conversation and discover why doing the right thing is always good business. Tune into the latest ONpoint Podcast for the full scoop.Sponsored by Consolidated Analytics