The Long Game of Fair Lending Compliance: A Conversation with Tory Haggerty

Q&A Series

What does it take to build a financial system that’s truly fair?

That question has earned more than 1 million views for Tory Haggerty — one of the nation’s most sought-after fair lending experts — in a recent TEDxMountRubidoux talk, where he makes a compelling case for why access to credit determines opportunity in America. And it’s the same question we put to him in this recent Q&A.

In fair lending, decisions don’t just matter today — they echo years into the future. Regulators may change, administrations may shift, but the loan files created now will still be scrutinized years from now.

We asked Haggerty, founder of Tuscan Club Consulting, to explain just where financial institutions are most vulnerable in fair lending compliance, the simple practices that are too often ignored, and the personal story that drives his mission.

Q: Given recent shifts in regulatory scrutiny, where are banks and credit unions most vulnerable?

A: Many lenders assume risk is down because federal oversight has eased. That’s a mistake. States are stepping in, advocacy groups are active, and civil liability is real. I recently saw a state regulator cite a student loan originator for disparate impact — an area the feds had pulled back from. And remember: the DOJ does a five-year lookback. The pendulum always swings back, and decisions made today will be judged by the next administration. My advice? Don’t pull back. Keep doing things the right way.

Q: If you could implement one industry-wide fix overnight, what would it be?

A: Basic monitoring. It’s simple, but often abandoned. Like going to the gym — easy to start, hard to maintain. Monitoring means checking loan files: Were ratios calculated correctly? Was the right income recorded? Was pricing guidance followed? Strong policies only matter if people follow them, and monitoring is how you know they do.

Q: Your TED Talk struck a chord. What made this so personal for you?

A: I grew up on a Native American reservation in South Dakota. I saw firsthand what poverty and discrimination do to families and communities. Equal access to credit could transform lives — yet millions are left out. Homeownership is one of the greatest wealth-building tools we have. My goal is to help end illegal discrimination in lending through education and better policies.

The takeaway: Fair lending isn’t a passing political trend. It’s a long game with high stakes. As Haggerty reminds us, today’s decisions will be evaluated years from now. By committing to consistent monitoring, clear policies, and a genuine dedication to equal access, lenders can protect their institutions while opening real pathways to financial opportunity.

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By Alphy staff

HarmCheck by Alphy is an AI communication compliance solution that detects and flags language that is harmful, unlawful, and unethical in digital communication. Alphy was founded to reduce the risk of litigation from harmful and discriminatory communication while helping employees communicate more effectively. For more information: www.harmcheck.ai.