8 common fair lending compliance myths – and the realities!
Editors note: this post was originally published in November 2015 and has been completely updated for comprehensiveness.
Myths are stories with a purpose, often used to justify an approach or belief system. In conversations with clients, friends and prospects, certain compliance myths regularly surface. We’ll share the 8 most common Fair Lending compliance myths and show you the truth!
“The great enemy of truth is very often not the lie — deliberate, contrived and dishonest — but the myth — persistent, persuasive, and unrealistic,” said former President John F. Kennedy in a 1962 commencement address at Yale University. “We enjoy the comfort of opinion without the discomfort of thought. Mythology distracts us everywhere.”
These powerful words illustrate exactly why myths are so dangerous and encourage us to seek truth and clarity.
In compliance, believing in myths may lead financial institutions to inaccurately prioritize focal points, or underestimate their Fair Lending risk exposure.