What Compliance Officers Can Learn from JPMorgan Chase

In a recent filing with the Securities and Exchange Commission, JPMorgan Chase reported that it has been questioned by the U.S. Department of Justice regarding possible racial disparities in loans the bank purchased from auto dealers. While the report does not mention whether the bank is the target of the probe or simply participating in […]

First United Bank of Texas

Another Lesson in Fair Lending: First United Bank of Texas

Background The First United Bank of Texas (FUB) is a $1.2 billion FDIC regulated subsidiary of Plains Bancorp operating in western Texas (Dimmitt, TX). The FDIC/DOJ investigations found the Bank charged Hispanic applicants 205 basis points (BPs) more than non-Hispanic applicants for unsecured consumer loans. After performing a regression analysis, the basis point differential between […]

The Cost of DOJ Fair Lending Settlements

There have been several Department of Justice fair lending settlements recently:  Countrywide, SunTrust and Wells Fargo specifically.  There are likely numerous takeaways from these settlements but let us focus on one of them: cost.  To be sure, charges of non-compliance with fair lending rules and regulation can be very expensive. The Cases Calculating the cost […]