First United Bank of Texas

Another Lesson in Fair Lending: First United Bank of Texas

Background The First United Bank of Texas (FUB) is a $1.2 billion FDIC regulated subsidiary of Plains Bancorp operating in western Texas (Dimmitt, TX). The FDIC/DOJ investigations found the Bank charged Hispanic applicants 205 basis points (BPs) more than non-Hispanic applicants for unsecured consumer loans. After performing a regression analysis, the basis point differential between […]

Learning from the OCC’s Semi-Annual Risk Perspective Report

Last Friday the OCC released its Semi-Annual Risk Perspective report. A key finding of the report is that increased competition among financial institutions has resulted in increased credit risk due to the weakening of underwriting standards as well as the increased layering of risk in credit products such as indirect auto lending. In this environment, […]

Auto Lending

Auto Lending: A New Fair Lending Hot Topic

In the current edition of the ABA Banking Journal Rich Riese, the Senior Vice President at the ABA Center for Regulatory Compliance, gave his view of the outlook for fair lending in 2013.  He said “bankers can expect to see the aggressive pursuit of fair lending to continue – and grow in scope.”  According to […]