What is fair lending compliance?
Overview. The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.
What is Interagency Fair Lending Examination Procedures?
The Interagency Fair Lending Examination Procedures were released by the Federal Financial Institutions Examination Council (FFIEC) in January 1999. The document establishes the proce- dures examiners use when examining financial institutions for compliance with the Equal Credit Opportunity Act and Fair Housing Act.
Who is responsible for fair lending compliance?
the Consumer Financial Protection Bureau
With the exception of those federally insured credit unions with assets over $10 billion, which are under the authority of the Consumer Financial Protection Bureau, NCUA enforces ECOA and Regulation B in federal credit unions and the Home Mortgage Disclosure Act (HMDA) and Regulation C in all federally insured credit …
What are the violations of fair lending?
Violations of the anti-discrimination law include the following:
- Refusal to sell, rent, or lease rooms, apartments, condos or houses to protected individuals.
- Refusal to negotiate for the sale, rental, or lease of housing.
What is the intent of fair lending?
Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans. Fair lending guarantees the same lending opportunities to everyone.
What is a potential consequence of violating fair lending requirements?
Failure to comply with the Fair Lending requirements may: Failure to comply with the Fair Lending requirements may result in fines and penalties, harm the bank’s reputation, and be a violation of the Code of Conduct, which could result in corrective action, up to and including termination of your employment.
Is a fair lending risk assessment required?
Fair lending risk assessments are an essential part of your overall fair lending compliance management. Not only are they required by the regulators, but they also provide valuable insights that can help your financial institution comply and grow.
What is prohibited under the concept of fair lending?
The definition of prohibited basis varies based on the specific regulation, but the possible prohibited bases are: race or color, religion, national origin, gender or sex, marital status, age, receipt of income from public assistance, exercise of rights under the CCPA, handicap, or familial status.
What are the responsibilities of a fair lending examiner?
1for comprehensive fair lending examinations. During each supervisory cycle, examiners perform a fair lending risk assessment in each national bank. Based on the risk assessment, examiners may initiate full scope fair lending examinations or other appropriate supervisory activities to ensure compliance with fair lending laws and regulations.
What are the federal laws for fair lending?
The federal fair lending laws — the Equal Credit Opportunity Act and the Fair Housing Act — prohibit discrimination in credit transactions, including transactions related to residential real estate.
How does the OCC do a fair lending examination?
For example, the OCC uses statistical modeling and regression analysis in selected examinations to assist in determining whether race, national origin, or sex was a factor in credit decisions. The OCC uses a risk-based approach to identify national banks and mortgage subsidiaries 1for comprehensive fair lending examinations.
What is the FDIC policy statement on discrimination in lending?
Policy Statement on Discrimination in Lending provides guidance on lending discrimination under various statutes and answers questions about how the FDIC and other federal agencies will respond to lending discrimination and what steps lenders might take to prevent discriminatory lending practices
