How to Conduct a Fair Lending Risk Assessment

Presented by: Jack Holzknecht and Mary Beth Guard



WHAT?
The federal bank regulatory agencies, the Department of Justice and others continue to pound banks over fair lending issues. Examiner-ordered corrective action generally includes conducting a risk assessment, training, ongoing monitoring and other solutions. All of these actions are part of a compliance management system (CMS). A well-developed Fair Lending CMS is the best way to prevent fair lending problems in the first place. And the CMS starts with a risk assessment. CONTENT
Upon completion of the program you will understand how to develop a fair lending risk assessment by;

• Evaluating inherent and residual risk;
• For various loan products (commercial, real estate, consumer, etc.);
• For various aspects of the process (application, underwriting, pricing, advertising, collection);
• Rating risk; and
• Evaluating appropriate risk controls including factors related to both managing and mitigating specific inherent risks as well as the strength of an entity's overall system of compliance management.

WHY?
Fair lending violations are getting a lot of attention from examiners and from the Department of Justice. Violations can be very expensive and the damage to the reputation of the financial institution can be devastating. In several 2011 cases cures have included requirements to open branches in minority areas and to provide grants exceeding $1 million.

WHO?
The program is designed for management of all loan departments, compliance officers, auditors, and those with responsibility for assuring compliance with fair lending laws and regulations.

About the Speakers: Jack Holzknecht is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced consultant who has provided training to thousands of bankers and examiners for twenty-four years. He has the ability to identify the key compliance issues from each regulation. Jack's career began in 1976 as a federal bank examiner. He later headed the form and software and education divisions of a regional consulting company. In that capacity he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by the Georgia, Iowa, Kentucky, Pennsylvania, Nebraska, New York and Texas bankers associations. He developed and delivered compliance training for the FDIC and OTS for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association. He is also a "BOL Guru" and frequently answers compliance questions sent to "Bankers' Threads."

Mary Beth Guard currently serves as Executive Editor of BankersOnline.com and CEO of Glia Group, Inc. Mary Beth has had a long and distinguished career, graduating from law school in 1980. She has focused her work exclusively on the banking industry since 1984. Previously, Mary Beth served as EVP/General Counsel and COO for the Oklahoma Bankers Association, EVP of Specialized Services for Thomson Financial Publishing, and General Counsel for the Oklahoma State Banking Department.

Mary Beth is one of the founders of BankersOnline.com. She maintains an active speaking schedule and has written many articles relating to compliance and other banking topics. She is a BOL Guru.


VIEW A 10 MINUTE SAMPLE
(requires Windows Media Player and IE).

CD-ROM Includes:

• Complete presentation (including slides and audio)
• Written Materials
• Follow-up Q & A

You have the right under this license agreement for this CD-ROM to use this presentation on a single-workstation. Use on a network is in violation of the copyright agreements. CD may be used by multiple users at a given institution but may not be placed on a network or in any other multi-user environment. This program was recorded in its entirety in March 2012. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.