Compliance Resource training manuals are designed to be used when conducting in-house training, whether initial training upon implementation of the new requirement, periodic training for new team members or remedial training for longer-term team members.
The issue of redlining is receiving increased attention in fair lending examinations. More cases of redlining are being cited. Cases now include community banks, in addition to the larger banks previously cited.
In a number of cases bank’s have received a solid Satisfactory or even an Outstanding rating on their most recent CRA examination, then the bank is cited for redlining. As a result of the fair lending violation the CRA rating is then dropped by one or more rating bands.
Banks are screaming, “How can we get an Outstanding CRA rating and then be cited for redlining.
While a financial institution may be meeting the credit needs of its CRA assessment area, it may fail to serve portions of its reasonable expected marketing area.
The Reasonably Expected Market Area (REMA) Training Manual is a brief (6 page), yet informative manual that highlights the emerging focus on REMAs by examiners, sources of information for the REMA concept, and how it is being incorporated with existing fair lending laws.
You may also be interested in the companion product to this manual, Reasonably Expected Market Area Director/Senior Management Update (DSMU).