Lending compliance

Lending compliance refers to the process of ensuring that financial institutions adhere to laws, regulations, and internal policies when issuing loans. It involves checking that lending practices are fair, transparent, and protect consumers from unfair or deceptive practices. This includes verifying borrower information, assessing creditworthiness, and following rules for mortgage disclosures or interest rates. Proper compliance helps prevent legal issues for lenders and ensures borrowers receive fair treatment. Overall, it’s about maintaining honest, consistent, and lawful lending activities in accordance with established standards.