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How equitable are your loan practices, really? Your community development programs? The Home Mortgage Disclosure Act (HMDA) and the Community Reinvestment Act (CRA) have been around for more than a quarter-century, but recent regulatory changes are making information about loan pricing practices available to the public.
This change means that lenders need to explain even more of their lending-related practices to the public and that regulators now have more information to assess perceived compliance failures. Both possibilities can lead to the loss of customers and declining shareholder value, not to mention fines. Banks that violate regulations also risk class-action lawsuits and damaged reputations, which cause further difficulties raising capital in debt and equity markets.
Unfortunately, confidently answering questions about fair lending, service availability and community reinvestment has been a serious challenge for banks. Many of the problems are technical. Banks often struggle, for instance, to aggregate the relevant details from a multitude of loan applications and then transform that data into a current, meaningful and comprehensive view of compliance status.
To avoid unnecessary risk, banks need a way to ensure regulatory compliance while improving the quality of their lending decisions.
Fair, reliable, compliant
SAS Fair Banking helps you reliably and consistently execute compliance program monitoring for all customers by providing the analytic depth to help you know materiality, set priorities and enhance risk controls. The solution enables the development and execution of fair and responsible business practices with a comprehensive understanding of markets, channels, products and consumers, enabling your organization to attain community lending, investment and service goals.
Specifically, SAS Fair Banking identifies and reports risk exposure areas, highlights specific actions that could improve CRA ratings – and fundamentally improves the way regulatory compliance is managed at the enterprise and branch levels.
SAS Fair Banking is the only solution that:
- Provides a singular measure of risk exposure through a global risk indicator to immediately surface potential areas of exposure and help direct investigative analysis.
- Uses enterprise data management to make lending information accessible immediately, anywhere and in the most appropriate form. The solution includes a data repository that imports source data from various systems in a process that applies HMDA and CRA formats and data cleansing routines.
- Provides drill-down reporting to answer compliance questions and gain the intelligence to generate proactive lending strategies.
- Enables advanced predictive analytics, including regressions, to help you describe and predict significant results with confidence.
- Examines fair banking activities across all levels of the organization – and then clearly and effectively presents results to all stakeholders, from senior management to front-line employees.
- Supports out-of-the-box customization to the unique needs of any organization.
- Includes intellectual property from industry experts on HMDA, CRA and fair lending.
The leader in banking intelligence
SAS has long been recognized as the provider of the most reliable and proven analytical expertise in the world. Our award-winning solutions are designed to handle the pains associated with the various lines of business and multiple data sources that are unique to the banking and financial services industry. In fact, 97 percent of FORTUNE Global 500® banks are SAS customers.
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