Uncontrolled, unmonitored loan pricing discretion in the hands of third parties will often lead to significant fair lending problems. If discretion or exceptions are allowed, lenders should impose policies and procedures to ensure monitoring and sufficient controls detect, prevent and provide the opportunity to cure fair lending violations. Through 2011, Provident Funding Associates allowed brokers unfettered discretion to charge higher fees and yield spread premiums to borrowers, resulting in disparities ranging from 16.9 to 58.2 basis points in fees charged to African American borrowers and up to 31.8 basis points in higher fees charged to Hispanics. Click here to read the entire article on National Mortgage News. email@example.com | 240.507.1740 Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.
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