The FDIC's Division of Compliance and Consumer Affairs (DCA)
has produced the enclosed financial institution help guide
entitled Mortgage Loan Prequalifications:Applications or Not?
The guide answers many questions about mortgage loan prequalification
programs frequently posed to DCA examiners, regional managers
and community affairs staff by lenders, consumers and others.
The guide will assist FDIC-regulated financial institutions
to develop mortgage loan prequalification programs and services
that provide good customer service and comply with important
components of fair lending laws and regulations, including
the Equal Credit Opportunity Act (ECOA), the Fair Housing
Act (FHA), and the Home Mortgage Disclosure Act (HMDA). The
guide will also help institutions minimize technical and substantive
violations commonly encountered in routine compliance examinations.
DCA's mission is to promote compliance with fair lending
and other consumer protection laws and regulations, and to
increase public understanding of and confidence in the deposit
insurance system. While the division's mission is accomplished
in part through compliance examinations, DCA hopes to further
its goals by assisting financial institutions with fair lending
compliance through education and guidance. If this guide proves
useful to financial institutions, DCA will consider developing
other help guides on topics of current interest or concern.
Please contact your DCA Regional Office for more information
about compliance with fair lending laws and regulations for
specific mortgage loan prequalification programs.
Carmen J. Sullivan
The attachment to this Financial Institution Letter is not
currently available in electronic format. Until it is in a
form that will allow us to post it to the internet, you may
obtain hard copy (fax not available) from:
Public Information Center
801 17th St. NW
Washington, DC 20434
ph: (703) 562-2200 Distribution: FDIC-Supervised Banks
(Commercial and Savings)