Still Have Mortgage Pricing Variations? What the Provident Settlement Means for Your Fair Lending Program

The CFPB and DOJ entered into a proposed consent order with Provident Funding Associates regarding its broker compensation policy, which resulted in higher fees to minority borrowers. While rules restricting loan originator compensation have reduced pricing variations in recent years, pricing variations continue to exist. Hence, even if your lending is compliant, pricing variations must be carefully assessed for fair lending risk. [6/2/15]