Understanding fair lending exposure and what it means for your bank or financial organization is essential to managing discriminatory risks and remaining compliant. Having the right fair lending software can significantly impact a lending institution’s ability to monitor potential fair lending risks across the entire enterprise. Let’s explore the most important features to consider when evaluating fair lending technology and selecting software that is right for your institution.

What is Fair Lending Software?

Monitoring possible risks of disparate impact and treatment across loan originations and servicing can be daunting. Each risk that is missed or overlooked during assessment leaves your organization exposed. Well configured software can help members of your team tailor rules and analytics to sweep the entire organization, quickly identifying any discriminatory risks that could put your institution out of compliance. New tools are able to rapidly ingest large data sets and run comprehensive reviews automatically.

What Are the Benefits of a Fair Lending Solution?

Implementing the right fair lending software can help financial institutions remain apprised of ever-changing compliance regulations and leave the complicated risk assessment to a specialized solution.

Keep up with compliance regulations

The fight against discriminatory practices in every sector has become increasingly prevalent, which is why oversight agencies are strengthening fair lending regulations, examinations, and enforcement. A fair lending software solution has the ability to ensure the most up-to-date requirements are being used to actively monitor your institution’s lending and servicing decisions for such risks.

Leave the risk review to purpose-built software

With a fair lending solution integrated into an institution’s operations, lenders save time connecting data points, creating analytic models, and identifying elevated risks, leaving more time to do what they do best — making loans to and servicing the loans of their customers.

What to Look for in Fair Lending Software

While there are a number of important factors to consider when evaluating fair lending solutions, there are four core features the right solution must offer to make a tangible impact.

In-depth analysis

All types of lenders require fair lending software that will monitor and analyze many areas of the institution to ensure disparate practices or fair lending risks have not evaded detection. Asurity’s RiskExec SaaS-based platform provides detailed analyses in fair lending exposure, enabling lenders to drill in on different loan types in both originations and servicing processes. The comprehensive RiskExec dashboard details regression analyses to help you better understand disparities, and the RiskExec platform conducts matched pair testing to uncover latent discriminatory practices that might otherwise go unnoticed. 

Seamless integration

The right fair lending solution will integrate seamlessly into your lending operations. RiskExec is accessed through a browser-based platform that does not require extensive setup to initiate monitoring for fair lending compliance. The experts at Asurity conduct a thorough onboarding process for your key team members, allowing those within your organization who are charged with this important responsibility immediately to make use of RiskExec’s dashboard and its other powerful modules.

Easy to use and understand

Detailed analytics and fair lending data are only helpful if they can be readily understood and applied to actionable choices facing your institution. Asurity’s RiskExec platform provides in-depth analyses and insights into various lending decisions, enabling active management and adjustments to lending criteria. 

Submissions & reporting

One of the major reasons a lender might utilize fair lending software is to collect data that is required to be aggregated and reported to regulatory agencies. The right fair lending solution will compile the appropriate data and generate HMDA submissions and reports — all with the touch of a few buttons. RiskExec eases the burden of managing regulatory compliance for banks, mortgage lenders, credit unions, and non-traditional lenders by automating HMDA submission and reporting, performing CRA analysis, preparing for fair lending examinations, and managing compliance.

Get Started with Asurity’s Fair Lending Software

The right fair lending solution lifts a burden from your compliance organization by providing the tools that enable active and periodic monitoring of fair lending risks, thereby helping your financial institution avoid or remediate any emerging compliance risks. If you’re ready to learn about how RiskExec from Asurity can help solve your fair lending compliance challenges, connect with Asurity’s regulatory and compliance experts today.