ComplianceTech: Pathway to Fair Lending Excellence

The Equal Credit Opportunity Act (ECOA) mandates every lending organization to follow a non-discriminatory approach while extending their credit services. However, there have been many instances wherein lenders are at the receiving end of lawsuit and penalties due to violation of fair lending policies. Such incidents not only violate the federal laws but besmirch the reputation of financial institutions as well. In order to avoid such circumstances, lending organizations need to monitor and analyze loan transactions through a data-driven approach. Set against such a backdrop, Virginia-based ComplianceTech offers unique, industry-leading software and analytics solutions that address legal and compliance challenges in the consumer lending ecosystem. “Our software-suite is designed to assist borrowers, lenders, as well as regulators to navigate through the intricacies of fair lending compliance regulations,” says Maurice Jourdain-Earl, Managing Director of ComplianceTech.

ComplianceTech’s comprehensive solution portfolio aids financial organizations to avoid discriminatory practices in the lending ecosystem. The innovative software package empowers organizations with enhanced speed and accuracy to comprehend various complex regulatory mandates and formulate policies to avoid violations. ComplianceTech eases the job of enforcers and regulators by equipping them with data analysis tools to monitor the lending practices of various organizations and earmark the violators. These measures, in combination, safeguard the best interests of end consumers, making sure that the benefits of fair lending policies are enjoyed by every individual and no one is discriminated or denied of credit on the basis of race, gender, nationality, age, et al.

ComplianceTech’s SaaS-based software package scales as per consumer needs and allows organizations to adopt the pay as you go model.

Our software-suite is designed to assist borrowers, lenders, as well as regulators to navigate through the intricacies of fair lending compliance regulations

Traversing in sync with their motto ‘All lenders are not alike and cookie-cutter approach to fair lending will not work,’ ComplianceTech brings to the fore consultancy services that provide statistical and data-driven analysis pertaining to various segments of the fair lending compliance spectrum. Focal point analysis, which is a data analysis driven service, mines deeper into lender’s organizational data and operations to expose potential risk factors. The firm’s fair lending risk assessment service scrutinizes the quality and quantity of data that a lender holds and identifies the fair lending risks involved. “Our consultancy services optimize the data extracted through our platform and formulates solutions that are tailored to meet client requirements,” Jourdain-Earl adds.

Jourdain-Earl emphasizes on developing a data-centric work culture, which is the foundation of all endeavors that the firm undertakes. Understanding the value proposition of data analytics in the fair lending ecosystem, ComplianceTech incorporates fact patterns and findings into its software package to stay abreast of legal frameworks. Alongside, the workforce at the firm is constantly educated and updated about regulations and laws pertaining to lending management, which in turn assists them to better comprehend specific client challenges.

In the forthcoming years, ComplianceTech envisions to capitalize on the rapidly increasing data elements that need to be furnished by financial institutions to adhere to Home Mortgage Disclosure Act (HMDA). While the current HMDA mandates require organizations to provide 40 data elements, the number is expected to rise to 110 by early next year. This would increase the need for data monitoring and analysis solutions. Armored with turnkey data analytics tools and a pool of experts, ComplianceTech endeavors to extend its services to benefit a wider audience.