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Federal Deposit
Insurance Corporation

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

Directors' Resource Center
Technical Assistance Video Program

Managing Fair Lending Risk

This series of presentations on managing fair lending risk was developed for Boards of Directors and senior management teams of community banks, as well as compliance and credit officers, and other personnel involved in the lending function.

I.   Overview and Summary of Fair Lending Laws
II.  Concepts of Disparate Treatment and Disparate Impact
III. Fair Lending Risk Indicators - Part I
III. Fair Lending Risk Indicators - Part II
IV. Developing a Compliance Management System for Fair Lending
V.  Review and Additional Resources


I. Overview and Summary of Fair Lending Laws

This first video of this series provides a summary of the fair lending laws and discusses the prohibited bases and some prohibited practices under each law.  The potential consequences of noncompliance with the fair lending laws are also provided. 

Approximate run time: 07:19

Link to YouTube Video

Presentation Materials - PDF


II. Concepts of Disparate Treatment and Disparate Impact

The second video in this series defines the concepts of disparate treatment and disparate impact. A discussion and illustrative examples are provided for each concept.

Approximate run time: 05:53

Link to YouTube Video

Presentation Materials - PDF


III. Fair Lending Risk Indicators - Part I

The third video in this series highlights several areas of potential fair lending risks that may be evident in a bank. Overt indicators, as well as underwriting and pricing risk indicators are discussed. For each of these areas, some of the more common risk indicators, strategies to mitigate risk, and illustrative examples are provided.

Approximate run time: 14:03

Link to YouTube Video

Presentation Materials - PDF


III. Fair Lending Risk Indicators - Part II

The fourth video in this series highlights additional areas of potential fair lending risks that may be evident in a bank. Redlining, steering, and marketing risk indicators are discussed. For each of these areas, some of the more common risk indicators, strategies to mitigate risk, and illustrative examples are provided.

Approximate run time: 15:53

Link to YouTube Video

Presentation Materials - PDF


IV. Developing a Compliance Management System for Fair Lending

The fifth video in this series provides some practical information to assist banks in developing and maintaining a strong and effective compliance management system that supports fair lending.

Approximate run time: 11:36

Link to YouTube Video

Presentation Materials - PDF


V. Review and Additional Resources

The final video in this series on managing fair lending risk provides an overview of the important concepts covered in the preceding videos. Additionally, a list of resources related to fair lending is provided.

Approximate run time: 04:22

Link to YouTube Video

Presentation Materials - PDF


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