March 20, 2025
9am-4pm


Member Fees: $265 (In-Person); $365 (Live Stream); $530 (Recording); $100 Add On Recording Fee with In-Person or Live Stream Registration
Non-Member Fees: $465 (In-Person); $565 (Live Stream); $730 (Recording); $100 Add On Recording Fee with In-Person or Live Stream Registration

Click here for tips if participating in the live stream seminar.

Please note: If you participate in-person or by live stream via Zoom, we will email a certificate to you following the program. Certificates will only be emailed to registered attendees. If you register for the recording, we will not be able to provide a certificate because we will not be able to track attendance.

*ABA Professional Certification Continuing Education Credit - This program will be submitted to ABA for CE Credit review (For In-Person and Live Stream Only)


For the past decade there has been a constant stream of enforcement actions against financial institutions for engaging in redlining. Redlining occurs when financial institution practices result in the restriction of lending in a particular geographic area, quite frequently a low-income or a high minority population area. Redlining is:

• Usually cited as a fair lending violation.
• Frequently listed as a weakness in a Community Reinvestment Act (CRA) management system.
• Quite often listed as both a fair lending and a CRA concern.
• Now there is Small Business Data Reporting

Fair lending laws, the Equal Credit Opportunity, and Fair Housing Acts prohibit illegal discrimination on a prohibited basis. CRA deals with income disparities, requiring financial institutions to meet the needs of their entire community, including low- and moderate-income areas. For years, both CRA and HMDA regulations have provided the data needed to test financial institutions on how well they do in meeting the needs of those they serve.

On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) published an 888-page final rule to implement Section 1071 of the Dodd-Frank Act. That section amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect and report certain data in connection with credit applications made by women, minority, and/or LGBTQI+ owned businesses and small businesses.

The industry is in full agreement that implementation of the new rule will consume extensive time and resources.

The combination of these critical regulations will bring to light issues in lending policies and will highlight a lack of lending in certain areas which is a direct link to redlining. The financial institutions that fail to meet the credit needs of its selected assessment area are a target of special interest groups. The populations of the redlined areas are often a high minority (fair lending) and low income (CRA). That is the collision of fair lending and CRA. What will the future bring with the passing of Small Business Data Collection 1071 regulations.

The concept of Reasonable Expected Marketing Area (REMA) has been used by regulators in recent years. REMA is not defined by law, is not covered in fair housing or CRA regulations, and is barely mentioned in examination procedures. For such a poorly defined concept it has caused big problems for many financial institutions.

The CRA regulations were finalized in 2023, bringing big changes. The program discusses how the concept of redlining is impacted by the revised CRA regulations.
 
This seminar explains the intersection and gaps between the regulations. Knowing what is in place and what to expect will aid institutions in understanding the risks and mitigants to have a plan in place to avoid issues. It reviews recent cases analyzing the problems in each institution that lead to the charges, the penalties imposed, and the corrective action required in each case. It clarifies the concept of REMA.

Upon completion of this program, you will understand:

• The umbrella of laws and regulations that make up fair lending.
• The regulations for CRA and the intersection with fair lending.
• Steps to detect potential redlining and actions to take to minimize problems.
• The public data collection requirements, the annual reporting requirements and what the data will say about your institution.
• The concept of Reasonable Expected Marketing Area and its impact on fair lending, CRA and Section 1071.
• The issues present in recent cases, the penalties imposed on each institution and the corrective action ordered by the regulators and what we can learn from them.
  

This seminar is designed for members of the board of directors, managers of all lending departments, bank counsel, compliance officers, loan officers, and auditors.

Kimberly Boatwright is EVP and Director of Risk and Compliance at Compliance Resource, LLC and has more than a two decades of experience working in the financial services industry. Ms. Boatwright is a well-regarded financial industry risk and compliance professional with a strong background in program development and implementation. She is a thought leader who specializes in Fair Lending, Anti-Money Laundering, OFAC and consumer compliance. During her career she has worked for and consulted with all types of financial institutions helping to establish and evolve compliance and risk programs. She is a frequent public speaker, trainer, and author on compliance and risk management topics. Kimberly is a Certified Regulatory Compliance Manager, a Certified Anti-Money Laundering Specialist, and a Fair Lending Expert.


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