Final answer:
Fair lending violations can result in reputational damage, fines, and lawsuits.
Step-by-step explanation:
Fair lending violations can have several consequences. One consequence is reputational damage from negative publicity. When a bank is found to have violated fair lending laws, it can lead to a loss of trust and confidence from the public, which can impact the bank's reputation and customer base.
Another consequence is the imposition of fines of over a million dollars per day by regulatory agencies such as the Federal Reserve or the Consumer Financial Protection Bureau. These fines are meant to serve as a deterrent and punishment for the violations.
Additionally, fair lending violations can result in lawsuits by individuals and state attorneys general. Individuals who have experienced discrimination in lending can file lawsuits against the bank, seeking compensation. State attorneys general can also take legal action to enforce fair lending laws and seek remedies for affected individuals.