Combating redlining
Another issue Casseres mentioned was how new technology and artificial intelligence can help lenders and brokers combat the practice of redlining, or where home loans were denied to residents of neighborhoods deemed high risk, typically based on race.
She noted that not only can this data keep you compliant, but it can also provide valuable insights into your market.
“I think it goes back to understanding data right, and understanding what your data tells you, not just for redlining issues, but also just to penetrate the market better and help build your business,” she said. “The expectation from regulators is that, because you have access to this information … that you are really looking at it, slicing and dicing it, and making sure that you’re proactive about implementing some sort of compliance management system to combat redlining.”
Casseres said she has seen states begin investigating issues like redlining. She emphasized the importance of proactively addressing any necessary changes to ensure fair lending practices, based on the data.
“And even if, from a federal enforcement perspective, perhaps initiatives have or priorities have shifted, there are still states that are looking at this,” Casseres said. “I’ve also had, recently, a lot of state housing coalitions that have launched investigations on some of our lenders. It’s still something to keep a really close eye on.