How is fair lending regulated in the United States?
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Why is it important that financial services promotions are fair,clear and not misleading?
Dec 06, 2021 · They include more than 130 life insurance companies, 1,168 property/casualty insurance companies, about 100 health insurers and managed care organizations, and more than 375,000 individual ...
What are the different units of the fair lending Commission?
Dec 08, 2021 · Disparate Treatment. Illegal disparate treatment occurs when a lender bases its lending decision on one or more of the prohibited discriminatory factors covered by the fair lending laws, for example, if a lender offers a credit card with a limit of $750 for applicants age 21 through 30 and $1,500 for applicants over age 30.
Who enforces the mortgage industry regulations?
Bureau of Consumer Protection. The FTC’s Bureau of Consumer Protection stops unfair, deceptive and fraudulent business practices by collecting reports from consumers and conducting investigations, suing companies and people that break the law, developing rules to maintain a fair marketplace, and educating consumers and businesses about their ...
Who is responsible for regulating the financial industry?
Who is responsible for most bank oversight?
Who are finance companies governed?
Who regulates finance companies in Australia?
- the Australian Prudential Regulation Authority (APRA);
- the Australian Securities and Investments Commission (ASIC);
- the Reserve Bank of Australia (RBA); and.
- the Australian Treasury.
Who are the financial regulators in India?
| Regulatory Body | Sector |
|---|---|
| Reserve Bank of India (RBI) | Banking & Finance, Monetary Policy |
| Securities & Exchange Board of India (SEBI) | Securities (Stock) & Capital Market |
| Insurance Regulatory & Development Authority (IRDAI) | Insurance |
| Pension Fund Regulatory & Development Authority (PFRDA) | Pension |
Which regulatory are responsible for overseeing banks in the Philippines?
Who are US prudential regulators?
Who Are US regulators?
| Regulatory Agency | Other Notable Authority |
|---|---|
| Federal Deposit Insurance Corporation (FDIC) | Operates deposit insurance for banks; resolves failing banks |
| National Credit Union Administration (NCUA) | Operates deposit insurance for credit unions; resolves failing credit unions |
Who regulates nondepository institutions?
What legislation does ASIC administer?
What is the purpose of regulatory bodies?
Regulatory bodies are established by governments or other organizations to oversee the functioning and fairness of financial markets and the firms that engage in financial activity . The goal of regulation is to prevent and investigate fraud, keep markets efficient and transparent, and make sure customers and clients are treated fairly and honestly.
What is the Federal Reserve Board?
The Federal Reserve Board. The Federal Reserve Board (FRB) is one of the most recognized of all the regulatory bodies. As such, the "Fed" often gets blamed for economic downfalls or heralded for stimulating the economy. It is responsible for influencing money, liquidity, and overall credit conditions.
Who regulates national banks?
Most national banks must be members of the Federal Reserve System; however, they are regulated by the Office of the Comptroller of the Currency (OCC). The Federal Reserve supervises and regulates many large banking institutions because it is the federal regulator for bank holding companies (BHCs).
What is the purpose of the Office of the Comptroller of the Currency?
1 Its main purpose is to supervise, regulate, and provide charters to banks operating in the U.S. to ensure the soundness of the overall banking system. This supervision enables banks to compete and provide efficient banking and financial services .
What is the purpose of the Federal Deposit Insurance Corporation?
The Federal Deposit Insurance Corporation (FDIC) was created by the Glass-Steagall Act of 1933 to provide insurance on deposits to guarantee the safety of funds kept by depositors at banks. 3 Its mandate is to protect up to $250,000 per depositor.
What is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) was created by the Glass-Steagall Act of 1933 to provide insurance on deposits to guarantee the safety of funds kept by depositors at banks. 3 Its mandate is to protect up to $250,000 per depositor.
What is the purpose of the FDIC?
The Federal Deposit Insurance Corporation (FDIC) was created by the Glass-Steagall Act of 1933 to provide insurance on deposits to guarantee the safety of funds kept by depositors at banks. 3 Its mandate is to protect up to $250,000 per depositor. The catalyst for creating the FDIC was the run on banks during the Great Depression of the 1920s.
Discrimination
The FHA prohibits discrimination in residential real estate–related transactions based on
Disparate Impact
A lender's policies, even when applied equally to all its credit applicants, may have a negative effect on certain applicants. For example, a lender may have a policy of not making single family home loans for less than $60,000.
Disparate Treatment
Illegal disparate treatment occurs when a lender bases its lending decision on one or more of the prohibited discriminatory factors covered by the fair lending laws, for example, if a lender offers a credit card with a limit of $750 for applicants age 21 through 30 and $1,500 for applicants over age 30.
Predatory Lending
Fair lending laws also contain provisions to address predatory lending practices. Some examples follow:
Unfair and Deceptive Practices
The OCC took the lead among the federal bank regulatory agencies in developing an approach to address unfair and deceptive marketing practices. These practices are often an element in predatory lending.
What is the Bureau of Consumer Protection?
The Bureau of Consumer Protection provides tips and advice about money and credit, homes and mortgages, health and fitness, jobs and making money, and privacy and identity.
What does the FTC do?
As the nation’s consumer protection agency, the FTC takes reports about scammers that cheat people out of money and businesses that don’t make good on their promises. We share these reports with our law enforcement partners and use them to investigate fraud and eliminate unfair business practices. Each year, the FTC also releases a report ...
What is the Office of Technology Research and Investigation?
The Office of Technology Research and Investigation is a trusted source for research and information on technology’s impact on consumers, and conducts independent studies, evaluates new marketing practices, and provides guidance to consumers, businesses and policy makers.
When a lender applies a racially or otherwise neutral policy or practice equally to all credit applicants, but
When a lender applies a racially or otherwise neutral policy or practice equally to all credit applicants, but the policy or practice disproportionately excludes or burdens certain persons on a prohibited basis, the policy or practice is described as having a “disparate impact.”
What is S1 in banking?
S1. Lack of clear, objective and consistently implemented standards for (i) referring applicants to subsidiaries, affiliates, or lending channels within the institution (ii) classifying applicants as “prime” or “sub-prime” borrowers, or (iii) deciding what kinds of alternative loan products should be offered or recommended to applicants (product placement).
When the scoping process or any other source identifies overt evidence of disparate treatment, should the examiner
Where the scoping process or any other source identifies overt evidence of disparate treatment, the examiner should assess the nature of the policy or statement and the extent of its impact on affected applicants by conducting the following analysis.
What should an examiner do for a commercial product line?
For the commercial product line selected for analysis, the examiner should first review credit policy guidelines and interview appropriate commercial loan managers and officers to obtain written and articulated standards used by the institution in evaluating commercial loan applications.
What is the task of selecting an appropriate expanded sample of prohibited basis and control group applications for commercial loans?
Generally, the task of selecting an appropriate expanded sample of prohibited basis and control group applications for commercial loans will require examiner judgment. The examiner should select a sample that is large enough to be able to draw a reasonable conclusion.
What is redlining in mortgage?
Overview: For purposes of this analysis, traditional “redlining” is a form of illegal disparate treatment in which an institution provides unequal access to credit, or unequal terms of credit, because of the race, color, national origin, or other prohibited characteristic(s) of the residents of the area in which the credit seeker resides or will reside or in which the residential property to be mortgaged is located. Redlining may also include “reverse redlining,” the practice of targeting certain borrowers or areas with less advantageous products or services based on prohibited characteristics.
Can discriminatory intent be inferred?
As a legal matter, discriminatory intent can be inferred simply from the lack of a legitimate explanation for clearly less- favorable treatment of racial or national origin minorities. Nevertheless, if the institution’s explanations do not adequately account for a documented difference in treatment, the examiners should consider additional information that might support or contradict the interpretation that the difference in treatment constituted redlining.
What is the SEC mission?
The SEC and its tripartite mission—to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation —are critical to the functioning of our economy and the well-being of millions of Americans.
What is the role of the agency's supervisors and program managers?
The agency’s supervisors and program managers also play a critical role in ensuring effective and efficient operations and activities. Today represents the first time since 2007 that the entire Commission has testified before Congress.
What is the Division of Enforcement?
Enforcement conducts investigations into possible violations of the federal securities laws and litigates the Commission’s civil enforcement proceedings in the federal courts and in administrative proceedings.
What is the Commission on Teachers?
The Commission recognizes that teachers, active duty military and veterans provide a tremendous service to our country, often at great personal and financial sacrifice to themselves and their families, yet are often targeted and fall victim to securities fraud and other misconduct.
Why are ethical issues important in financial services?
Ethical issues in the financial services industry affect everyone, because even if you don’t work in the field, you’re a consumer of the services. That was the message of Ronald F. Duska and James A. Mitchell in their presentation at the Oct. 24, 2006, meeting of the Business and Organizational Ethics Partnership.
What happened to Qwest in 2001?
This is what happened at Qwest during the first three quarters of 2001, when the company was selling $870 million of capacity, while at the same time buying $868 million of capacity. These swaps appeared to be round-trip transactions, which served no purpose other than to inflate Qwest’s revenues, Duska said.
How important is it for an auditor to challenge management's assertions?
For auditors to effectively challenge management’s assertions it is important that they are independent of the organisation. In most jurisdictions there are legislative requirements and/or professional and ethical standards which prescribe the independence of the auditor. These may include whether the auditor is permitted to have a financial interest in the entity, the extent to which non-audit services (such as tax compliance or consultancy services) can be provided and the frequency with which the audit partner and others involved in the audit need to ‘rotate’ in order to safeguard their objectivity. Directors should ensure that a framework is in place to monitor compliance with these requirements.
What is the real strength of directors' compliance with financial reporting responsibilities?
The real strength of directors’ compliance with financial reporting responsibilities is how well directors discharge these responsibilities. A good director will challenge the information and ideas presented by management and other parties and approach their role with an open mind.
What is the responsibility of a director for financial reporting?
Directors’ responsibility for financial reporting arises from the duty of care directors have to the organisation it is governing. This duty of care is generally written into legislation and other regulatory requirements around the world. For example, in Australia directors’ duty of care is provided for in the Corporations Act 2001. In New Zealand the Companies Act 1993 introduces the requirement, stating that: A director of a company, when exercising powers or performing duties as a director, must exercise the care, diligence, and skill that a reasonable director would exercise in the same circumstances….4 Appendix One provides similar examples for various jurisdictions. These legislative requirements are often supplemented by a formal written agreement between the organisation and the director outlining further specific terms of appointment, including responsibilities for financial reporting.
What is the role of a director in financial statements?
Directors also have a key role in understanding and approving the assumptions adopted by the organisation and the key areas of judgement and estimation applied in preparing the financial statements. An example of such an assumption is the ‘going concern10’ assumption. Financial statements are prepared on either a going concern basis or a ‘wind-up11’ basis. Directors often have specific responsibilities where the going concern assumption is in doubt, such as reviewing forecasts and ensuring that adequate financial support is in place should the organisation need it. Reviewing the validity of the going concern assumption is different to assessing the solvency of an organisation (see top tip below).
What is fraud in business?
Fraud: an intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception to obtain an unjust or illegal advantage.
Can the Department of Justice file a lawsuit under the Fair Housing Act?
The Department of Justice may file a lawsuit under ECOA where there is a pattern or practice of discrimination . In cases involving discrimination in home mortgage loans or home improvement loans, the Department may file suit under both the Fair Housing Act and ECOA.
Who can file a complaint against HUD?
Individuals who believe that they have been the victims of any unfair credit transaction involving residential property may file a complaint with the Department of Housing and Urban Development [HUD] or may file their own lawsuit.
What is financial promotion?
Financial promotions or adverts are likely to be the most regular contact consumers have with firms that offer financial services and products. Financial promotions can take the form of a website, Facebook post, tweet, etc. They can form a significant part of a consumer’s product knowledge, and can influence a consumer’s decision making ...
What is claims management?
claims management (including personal injury, housing disrepair, specified benefit, criminal injury and employment related) All financial promotions must be clear, fair and not misleading regardless of the media type.