Skip Header

Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Home > News & Events > Inactive Financial Institution Letters 

Inactive Financial Institution Letters 

Equal Credit Opportunity Act And Fair Housing Act

February 14, 1997


SUBJECT: Proposed Revisions to the Equal Credit Opportunity Act and the Fair Housing Act Regarding Self-Testing of Lending Transactions

The Economic Growth and Regulatory Paperwork Reduction Act of 1996, enacted on September 30, 1996, encourages lenders to voluntarily conduct "self-tests" of their lending transactions to determine their level of compliance with the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA).

The Board of Governors of the Federal Reserve System and the Department of Housing and Urban Development (HUD) recently issued for public comment the attached proposed revisions to the ECOA and the FHA concerning self-testing. Comments on the Federal Reserve System's proposed revisions to the ECOA were due on January 31, 1997. The comment period for HUD's proposed revisions to the FHA will end on March 3, 1997.

The rules proposed by HUD and the Federal Reserve System are substantially similar. Under the proposed rules, when a lender voluntarily conducts or authorizes a third party to conduct a test of its lending transactions, the test results or reports are considered privileged only if the lender has taken or is taking appropriate corrective action to fully remedy both the cause and the effect of any possible violations.

The FDIC encourages all interested parties to review the attached proposals. Written comments on HUD's proposed rule should be mailed to the Rules Docket Clerk, Office of General Counsel, Room 10278, Department of Housing and Urban Development, 451 Seventh Street, S.W., Washington, D.C. 20410.

For further information, please contact your FDIC Division of Compliance and Consumer Affairs Regional Office.

Carmen J. Sullivan

Federal Register, Vol. 62, No. 1, pp 56-62 and Vol. 62, No. 21, pp 4882-4887.
(Available at, under "banking news.")

Distribution: FDIC-Supervised Financial Institutions

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

Last Updated 07/16/1999

Skip Footer back to content