Fair Lending

Laws and Regulations

Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.

• Part 1002 — Equal Credit Opportunity Act (Regulation B) provides access to the Consumer Financial Protection Bureau’s Regulation B — Equal Credit Opportunity
• Civil Rights Act of 1968 — Title VIII (Fair Housing) discusses the prohibitions on discriminatory actions in mortgage lending transactions
• Part 100 — Discriminatory Conduct Under the Fair Housing Act describes the elements of discrimination related to residential real estate transactions and was issued to administer and enforce Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988
• Part 338 — Fair Housing discusses prohibitions on discriminatory advertising with regard to residential real estate-related transactions and details recordkeeping requirements

Supervisory Resources

Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to address consumer protection issues.

• Interagency Statement on Special Purpose Credit Program Under the Equal Credit Opportunity Act and Regulation B reminds creditors of the ability under the Equal Credit Opportunity Act (ECOA) and Regulation B to establish special purpose credit programs to meet the needs of specified classes of persons
• Interagency Fair Lending Examination Procedures - PDF and Section IV. Fair Lending — Fair Lending Laws and Regulations - PDF of the FDIC Consumer Compliance Examination Manual provide instructions and an abbreviated discussion of federal fair lending laws and regulations adapted from the Interagency Policy Statement on Fair Lending
• Interagency Fair Lending Examination Procedures Appendix - PDF and Section IV. Fair Lending — Appendix - PDF of the FDIC Consumer Compliance Examination Manual provide resources to be considered and selected from, depending on the nature and scope of the fair lending review being conducted
• 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
• Equal Credit Opportunity and Fair Housing Acts Enforcement Policy Statement provides guidance to ensure that the rights of credit applicants are protected by requiring creditors to take corrective action for certain, more serious past violations of the Equal Credit Opportunity and Fair Housing Acts as well as to be in compliance in the future
• Interagency Statement on Fair Lending Compliance and the Ability-to-Repay and Qualified Mortgage Standards Rule provides a statement issued in response to inquiries from creditors about whether they would be liable under the disparate impact doctrine of the Equal Credit Opportunity Act and Regulation B, by originating only Qualified Mortgages as defined under the Ability-to-Repay and Qualified Mortgage Standards Rule
• Qualified and Non-Qualified Mortgage Loans — Interagency Statement on Supervisory Approach - PDF provides guidance regarding the underwriting of residential mortgage loans and the fair lending implications
• Guidance for Managing Third-Party Risk provides a general framework for oversight and risk management of third-party relationships and discusses the board of directors' responsibility for outsourced activities
• FDIC's Supervisory Policy on Predatory Lending provides guidance on predatory lending, including a list of policies and procedures that relate to consumer lending standards, treating consumers fairly, adherence to applicable legal requirements, and appropriately underwriting loan products
• ECOA — Understanding Age-Based Discrimination in Credit Card Lending - PDF provides useful information, in the form of an FDIC Newsletter, relating to the Truth in Lending Act credit card rules affecting young consumers, as well as the anti-discrimination provisions of the Equal Credit Opportunity Act
• Implementing a Fair Lending Action Plan to Manage Discretion in Credit Decisions - PDF provides information, in the form of an FDIC Newsletter, to institutions on the identification and management of discretion in pricing, underwriting, and other aspects of credit transactions
• FDIC Consumer Compliance Examination Manual provides information and examination procedures to assist institutions with understanding and complying with fair lending-related requirements
  • Section IV. Fair Lending — Fair Lending Scope and Conclusions Memorandum - PDF provides the written template examiners use to document an institution’s fair lending review
  • Section V. Lending — Equal Credit Opportunity Act - PDF provides an introduction to the Equal Credit Opportunity Act and outlines regulatory requirements as well as related examination procedures
  • Section V. Lending — Fair Housing Act - PDF provides an introduction to the Fair Housing Act and outlines regulatory requirements as well as related examination procedures
• Identifying and Mitigating Potential Redlining Risks - PDF provides useful information on how banks can identify and mitigate potential redlining risks

Other Resources

Supplemental information related to consumer protection issues.

• Office of General Counsel Guidance on the Fair Housing Act’s Treatment of Certain Special Purpose Credit Programs that are Designed and Implemented in Compliance with the Equal Credit Opportunity Act and Regulation B - PDF (hud.gov) provides the U.S. Department of Housing and Urban Development’s guidance on whether the Fair Housing Act forbids Special Purpose Credit Programs for real estate loans or credit assistance that are compliant with the Equal Credit Opportunity Act and its implementing regulation, Regulation B
• Advisory Opinion – Equal Credit Opportunity (Regulation B); Special Purpose Credit Programs - PDF (files.consumerfinance.gov) provides the Bureau of Consumer Financial Protection information to address regulatory uncertainty regarding Regulation B
• Memorandum — Identifying Lender Practices that May Form the Basis of a Pattern or Practice Referral to the Department of Justice - PDF (justice.gov) provides access to the Department of Justice’s guidelines to determine the legal and factual aspects of a pattern or practice and referral considerations

Videos/Webcasts/Teleconferences

Informational videos and recordings of archived webcasts and teleconferences.

• FDIC Technical Assistance Video Program series on Fair Lending provides information to help institutions identify and mitigate fair lending risk
• 2021 Interagency Fair Lending Hot Topics (consumercomplianceoutlook.org) provides the interagency webinar where the FDIC addressed Redlining and Marketing
• 2020 Interagency Fair Lending Hot Topics (consumercomplianceoutlook.org) provides the interagency webinar where the FDIC addressed Assessing Fair Lending Risk: Policies and Procedures
• 2019 Interagency Fair Lending Hot Topics (consumercomplianceoutlook.org) provides the interagency webinar where the FDIC addressed Fair Lending Reviews: Analysis in CRA Protests
• 2018 Interagency Fair Lending Hot Topics (consumercomplianceoutlook.org) provides the interagency webinar where the FDIC addressed Fair Lending Reviews: Assessing Fair Lending Risk
• 2017 Interagency Fair Lending Hot Topics (consumercomplianceoutlook.org) provides the interagency webinar where the FDIC addressed Fair Lending Monitoring Programs
• 2016 Interagency Fair Lending Hot Topics (consumercomplianceoutlook.org) provides the interagency webinar where the FDIC addressed Redlining: A Bank’s Reasonably Expected Market Area