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Financial Institution Letters

Fair Lending Examinations

FIL-14-99
February 11, 1999

 
TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Interagency Fair Lending Examination Procedures

The Federal Financial Institutions Examination Council (FFIEC) has approved the attached fair lending examination procedures. They are intended to provide consistency in the fair lending examination process among the federal banking regulators through a basic, flexible framework. The procedures provide guidance on taking a comprehensive, efficient, risk-based approach to examining banks for compliance with the nondiscriminatory requirements of the Equal Credit Opportunity (ECOA) and Fair Housing Acts (FHA).

The procedures include instruction on how to:

  • scope an examination to identify areas of risk,
  • limit the scope of review based on an institution's compliance program,
  • conduct comparative reviews of loan FILes and other analyses to identify discrimination, and
  • discuss issues raised during the examination with bank management.

The procedures also provide a blueprint for financial institutions on how to conduct a thorough self-assessment. No revisions were made to the examination procedures for technical compliance with ECOA and FHA.

For more information, please contact

Faye F. Murphy
Fair Lending Specialist
Division of Compliance and Consumer Affairs
telephone: (202-942-3539)
fmurphy@fdic.gov

The examination procedures also can be accessed electronically on the Internet through the Web pages of the FFIEC(www.ffiec.gov) and the FDIC (www.fdic.gov).

  Ronald F. Bieker
  Acting Director


Attachments:  INTERAGENCY FAIR LENDING EXAMINATION PROCEDURES

  INTERAGENCY FAIR LENDING EXAMINATION PROCEDURES (APPENDIX)
Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).

Last Updated 07/17/1999 communications@fdic.gov