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 […]
Tag Archives: Small Institutions
A Survival Strategy: What Can Regression Analysis Do For You?
“Monitoring is not an option”- a quote from a speaker at the recent American Bankers’ Association (ABA) fair lending conference in reference to fair lending monitoring. In today’s fair lending compliance environment, compliance officers are besieged with new regulations as well as new requirements for old regulations. How do you survive? Multiple strategies are probably […]
Small Bank Signs Intent Decree for Fair Lending Complaint
Fort Davis State Bank: Elements of a Small Bank Monitoring Program Recently Fort Davis State Bank (FDSB) of Fort Davis, Texas a $78 million three branch institution signed a consent decree with the Department of Justice. The DOJ complaint, based on an FDIC referral, alleged that FDSB charged Hispanic borrowers more for unsecured loans than […]