In the June issue of Mortgage Banking Magazine, Todd J. Fisher, chairman and founder of Intraprise Solutions, and Thomas J. Healy, CMB, president of Level1Analytics, write a compelling article that considers the paradox created by legislation complicating the banking industry’s mortgage lending model.
Fisher and Healy examine The Community Reinvestment Act and the Dodd- Frank Wall Street Reform, two pieces of legislation, separated by 33 years, that simultaneously attempt to expand (under the CRA) and restrict (under Dodd-Frank) home borrowing opportunities – a seeming contradiction. Looked at together, the authors consider the inherent contradiction of the two pieces of legislation and suggest the legislative paradox can be solved with the use of enhanced data sets and sophisticated analytics designed to help lenders mitigate risk and develop a more individualized approach to fair, safe and responsible lending.
