Tuesday, August 26, 2025

Knowledgeable warns brokers about rising state oversight amid CFPB downsizing

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Combating redlining

One other challenge Casseres talked about was how new know-how and synthetic intelligence can assist lenders and brokers fight the practice of redlining, or the place house loans have been denied to residents of neighborhoods deemed excessive danger, sometimes primarily based on race.

She famous that not solely can this knowledge preserve you compliant, however it could possibly additionally present helpful insights into your market.

“I feel it goes again to understanding knowledge proper, and understanding what your knowledge tells you, not only for redlining points, but in addition simply to penetrate the market higher and assist construct your corporation,” she stated. “The expectation from regulators is that, as a result of you’ve gotten entry to this info … that you’re actually it, slicing and dicing it, and ensuring that you simply’re proactive about implementing some kind of compliance administration system to fight redlining.”

Casseres stated she has seen states start investigating points like redlining. She emphasised the significance of proactively addressing any mandatory adjustments to make sure honest lending practices, primarily based on the information.

“And even when, from a federal enforcement perspective, maybe initiatives have or priorities have shifted, there are nonetheless states which can be this,” Casseres stated. “I’ve additionally had, not too long ago, a variety of state housing coalitions which have launched investigations on a few of our lenders. It is nonetheless one thing to maintain a extremely shut eye on.



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