fed speech, 2005-11-07
Management should consider several factors:1. whether loan originators' compensation provisions incorporate incentives to extract fees from vulnerable or less well-informed borrowers;2. whether fair lending training programs adequately address issues of pricing discrimination; and3. whether loan-documentation requirements provide a sufficient basis for demonstrating to the institution's auditors and, if need be, its regulator, that pricing differences resulting from the exercise of discretion are a function of market factors and not unlawful discrimination.
Sentiment: neutral
Topic: mp_credit