Fair lending laws also contain provisions to address predatory lending practices. References to national banks in this booklet also generally apply to federal branches and agencies of foreign banking organizations. The revised installment lending booklet updates and replaces the installment loans booklet issued in march 1990, and examination procedures. Apr 19, 2017 the three 2017 priority areas are the same as those identified by patrice ficklin, associate director of the cfpbs office of fair lending, in her december 2016 blog post that outlined the cfpb s fair lending priorities for 2017. From time to time, occ senior management may recommend a specific sampling method for examining certain on or offbalancesheet accounts. Government printing office huds fair housing regulations. This booklet expands the assetbased lending abl examination fundamentals discussed in the accounts receivable and inventory financing booklet of the comptrollers handbook, issued in march 2000, and replaces abl guidance in section 214, other commercial lending. This booklet applies to the occs supervision of national banks and federal savings associations. This booklet incorporates updated procedures and requirements following the integration of the office of thrift supervision. Texasclerks advantages of a fha mortgage in 2019 loans with the lowest credit scores tend to default at a. Occ report highlights top risks for banks manatt, phelps. This booklet focuses on compliance with the fair housing act, equal credit opportunity act, and regulation b the consumer protection regulation that implements the equal credit opportunity act. The federal financial institutions examination council ffiec, on behalf of its members, released final guidance on the applicability of consumer protection and compliance laws, regulations, and policies to activities conducted via social media by banks, savings associations, and credit unions, as well as nonbank entities supervised by the consumer financial protection bureau.
Payday lending rule prepaid rule remittance transfer rule. This revised booklet replaces the booklet of the same title issued in june 2002. The enewsletter will keep you up to date on pending legislation, comment deadlines and implementation dates. Residential real estate lending, which comprises loans for purchasing properties designed to house onetofour families. On february 12th, the office of the comptroller of the currency occ issued the installment lending booklet of its comptrollers handbook. Conducting examinations is one of our key tools to ensure that supervised entities comply with federal consumer financial laws. Account management programs can target individual accounts or large portfolio. The revised management booklet provides guidance to examiners and outlines the principles of governance and risk management as. Lenders must also consider fair lending risks when lending to. The occ encourages banks to engage in lending programs that meet identified. Wolters kluwer fair lending offers industryleading technology and consulting services to help your team manage, monitor and mitigate exposure to fair lending risk such as redlining. The office of the comptroller of the currencys occ comptrollers handbook is prepared for. Note for community banks this guidance applies to all national banks and federal savings associations collectively, banks.
It is packed with useable, turnkey procedures and regularly features flow charts, insightful sidebars and readytouse sample forms. Include any history of fair lending violations, or any areas identified as fair lending risks either in the last fair lending examination report by the cfpb or any state or federal regulator, or new fair lending risks that have emerged since the last fair lending examination. This booklet focuses on compliance with the fair housing act, equal credit opportunity act, and regulation b the consumer protection regulation that. I have been researching fair lending software outside of wk wiz, as the cost seems to be prohibitive and we felt like the results werent concrete. May 18 as explained in occ 201147, the occ is committed to evaluating former ots guidance, addressing common supervisory issues consistently, and accommodating regulatory and statutory differences appropriately. The federal reserve is issuing the attached guidance on managing outsourcing risk to assist financial institutions 1 in understanding and managing the risks associated with outsourcing a bank activity to a service provider to perform that activity. This page primarily contains guidance on information technology it examination activities including aspects of operational risk management, which arises from the potential that inadequate information systems, operational problems, breaches in internal controls, fraud, or unforeseen catastrophes.
This booklet applies to the occ s supervision of national banks. Revised edition of sidebyside, a guide to fair lending the fdic has revised its 1994 edition of sidebyside, a guide to fair lending see fil4794. Occ bulletin 201721, frequently asked questions to. This information security booklet is an integral part of the federal financial institutions examination council. The federal financial institutions examination council ffiec has issued the attached interagency statement on pandemic planning for use in identifying the continuity planning that should be in place to minimize the potential adverse effects of a pandemic. Full text of president clintons community reinvestment act reform initiative and enforcement of federal fair lending laws. Comply fair lending risk analysis software rata associates. Fair lending wiz is a complete and automated fair lending management solution from wolters kluwer.
Ffiec it examination handbook infobase information security. Exception and discount programs that are not well defined. The research also indicates that fintech lenders process mortgage applications approximately ten days faster than traditional lenders, without increasing the credit risk of loans. Compliance insights july 2018 protiviti united states. Full text of president clintons community reinvestment. Residential real estate lending office of the comptroller of the currency, penny hill press on.
The occs goal is to produce a consistent supervisory approach and integrated policy. Fair lending compliance applies to all types of lending, not just hmda loans. Chief executive officer and compliance officer subject. I have seen demos from trupoint and also questsoft fair lending magic.
Bcg monthly newsletter archive bankers compliance group. While regulated banks are not immune from these risks. Cfpb hmda faqs last updated march 6, 2020 opens new window department of defense military lending act limitations on terms of consumer credit extended to service members and dependents interpretive rule amendment published feb. The office of the comptroller of the currency occ issued today the retail lending booklet of the comptrollers handbook. Until 2011, rulewriting authority rested with the federal reserve but was transferred to the consumer financial protection bureau by the doddfrank act. The booklet outlines the principles of sound governance and, more. Trupoint seems to have the more advanced analytics. This booklet applies to the occs supervision of national banks. Financial regulators release revised management booklet. Comply fair lending is a robust software solution based on the ffiec federal financial institutions examination council and cfpb consumer financial protection bureau fair lending examination procedures and is the simplest and most cost effective way to monitor potential risk associated with lending performance. The reason each document is rescinded is noted as one of the following. As in other market segments, these techbased solutions may raise novel and significant, fair lending considerations. Tara oxley, chief, fair lending and cra examinations, federal. The guidance is being published after consideration of comments received from.
The guidance attached to this bulletin continues to apply to federal savings associations. The occ updated the student lending booklet of the comptrollers. The fair housing act fhact prohibits discrimination in all. Hmda was enacted in 1975 and has been expanded over the years to collect additional data. The federal financial institutions examination council ffiec members today issued a revised management booklet, which is part of the ffiec information technology examination handbook it handbook the management booklet, including the examination procedures, has been substantially revised. According to the office of the comptroller of the currencys occ semiannual risk. Interest rates for commercial real estate loans commercial real estate lending the office of the comptroller of the currencys occ comptrollers handbook booklet, commercial real estate lending, provides guidance for bank examiners and bankers on.
Wells fargo fails fair lending test due to discriminatory. Fair lending wiz wolters kluwer financial services. Most recently, she has supported software products for financial institutions and engaged in lobbying efforts in congress as well as with the fdic, cfpb. The fdics consumer compliance examination manual manual is revised on an ongoing basis as rules, regulations, policies, and procedures change. Bcg members can view a newsletter below by selecting the download button.
Where to start if youre brandnew to compliance, and how to finish strong, regardless of your experience. When banks use artificial intelligence, they often use algorithm models and rules that rely upon historical data. Retail lending booklet when specific retail credit products, services, or risks warrant. Section 602 of the egrrcpa amends the fair credit reporting act to. Share this page occ revised comptrollers handbook booklet and rescissions installment lending february 12, 2016 source. Guidance in the appendix to the interagency fair lending examination procedures provides details on how to obtain relevant information regarding such situations along with methods of evaluation, as appropriate. Retail lending, comptrollers handbook lexis securities mosaic. If model rules are outdated or the data used in the algorithm models. This new booklet, part of the safety and soundness category of the comptrollers handbook, discusses the risks associated with retail lending and provides a framework for evaluating retail credit risk management activities. Top management and performance challenges facing the. The office of the comptroller of the currency occ is issuing, as an appendix to part 30 of its regulations, guidelines concerning the residential mortgage lending practices of national banks and their operating subsidiaries guidelines as a further step to protect against national bank.
Any attachments to the document are rescinded only as they relate to national banks and federal savings associations. The guide offers suggestions on how an institution can compare its. The three essential steps to fair lending compliance success. The business continuity planning booklet is one of 12 that, in total, comprise the ffiec it examination handbook. The management booklet is one of 11 that make up the it handbook. Occ the office of the comptroller of the currency occ issued today the installment lending booklet of the comptrollers handbook. The office of the comptroller of the currency occ recently revised the electronic version of the fair lending booklet of the comptrollers handbook. The cfpb also claims the company failed to notify its auto lending clients about known software flaws which caused the. Ficklins blog post, the fair lending report includes the cfpbs plans to ramp up its. Fair lending analysis software l trupoint analytics. Fair lending risk is among the most prominent concerns for mortgage lenders, in large part because of uncertainty about what constitutes a discriminatory practice and the fact that factors underlying such risks can crop up in the least likely of places such as a congressional hearing, for example. Its easy to understand why bankers may be tempted to loosen their lending standards. To learn more about our fair lending efforts, check out our recent report to congress or our recent blog posts. Who will benefit this informative session will benefit frontline lending staff, loan officers, loan processors, compliance officers, auditors, credit administrators, risk managers, fair lending officers, and senior management.
This booklet discusses risks associated with lending and addresses sound loan portfolio management. The federal financial institutions examination council ffiec has revised the management booklet of the ffiec information technology examination handbook it handbook. Backed by our comprehensive warranty, our wolters kluwer mortgage lending documents support the originating, processing and closing of first mortgage, second liens, and helocs for conventional, government and investor mortgage. Links to fair lending resources, including a listing of fair lending cases the justice department has litigated.
The practice of making loans that rely on the liquidation value of the borrowers home or other collateral rather than the borrowers ability to repay. Occ revised comptrollers handbook booklet and rescissions. Occ issues guidance for shortterm, smalldollar consumer installment lending in may 2018, the office of the comptroller of the currency occ issued new guidance for its supervised banks regarding shortterm, smalldollar consumer installment loans, which it defines as those repaid in equal amortizing payments, usually over a period of two to 12 months. Community bankers of iowa march 2015 west des moines, ia. The only truly allinclusive federal banking compliance advisory service staffed with attorneys, former auditors and compliance specialists. On thursday, november 9, 2017, the occ issued the background investigations booklet of the. Fair lending report 2016 we are committed to ensuring fair, equitable, and nondiscriminatory access to credit by finding and eliminating discriminatory lending practices, and also by encouraging lenders to maintain robust compliance management systems that reduce the chances of discrimination occurring in the first place. This federal reserve guidance builds upon the ffiec outsourcing technology services booklet 2004 that addresses outsourced information technology.
Such examinations may evaluate safety and soundness risks, the financial and operational viability of the third party to fulfill its contractual obligations, compliance with applicable laws and regulations, including consumer protection, fair lending, bsaaml and ofac laws, and whether the third party engages in unfair or deceptive acts or. The credit union may also want to provide the board of directors and senior management with the information needed to identify and evaluate fair lending risk for. The credit union may also want to provide the board of directors and senior management with the information needed to identify and evaluate fair lending risk for consumer loan pricing. Federal register occ guidelines establishing standards for. Ots provided training to all its compliance examiners on the interagency fair lending examination. The fair housing act fhact prohibits discrimination in all aspects of. Apr 04, 2014 on march 27, the office of the comptroller of the currency occ issued a new assetbased lending handbook. From a fair lending perspective tpos are the financial institution and if any tpo does not comply with fair lending regulations the financial institution may be as culpable as if you were the initial creditor. Fair debt collection fdcpa pdf ftc staff commentary ftc staff opinions material to educate consumers fair lending fair housing act fair lending guide occ fair lending examination procedures pdf fdic insurance fdic insurance increase notice oct. The office of the comptroller of the currencys occ comptrollers handbook booklet, residential real estate lending.
Nov 05, 2015 consumer financial services law monitor monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues home occ releases updated booklet on credit card lending. How the regulators run fair lending exams, and what it means for you. The occ continues to step up its efforts in this regard. This is a three page assessment identifying basic fair lending parameters, with low, medium, high indicators. These revisions include both new and revised procedures.
Truth in lending act category archives page 2 of 4. Cfpb lays out 2017 fair lending priorities on december 16, 2016, the consumer financial protection bureau cfpb published a blog. We are focusing particularly on developments relating to rising credit and concentration risk, making sure that banks understand and take steps to properly manage them. Cfpb mortgage examination procedures origination cfpb january 2014 procedures 3 loans provided borrowers with several payment choices each month during the loans introductory period, including a minimum payment that was less than the interest accruing and due on the principal each month. Wolters kluwer mortgage lending documents electronic. The occ issued today the retail lending booklet of the comptrollers handbook, which discusses the risks associated with retail lending and provides a framework for evaluating retail credit risk management activities. Describe the entitys fa ir lending supervisory history. Statistical techniques and fair lending 279 3 the occ plans to issue new fair lending examination procedures that will supercede the october 1997 handbook. Consumer compliance regulatory resources national credit. Learn how fair lending analysis of your consumer, commercial, and agricultural lending can reduce your risk. Home mortgage disclosure act reg c american bankers. The council is a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by the board of governors of the federal reserve system, the federal deposit insurance corporation, the national credit union administration, the office of the comptroller of the currency, and the consumer financial. The information technology examination handbook infobase concept was developed by the task force on examiner education to provide field examiners in financial institution regulatory agencies with a quick source of introductory training and basic information.
Mar 28, 2017 wells fargo fails fair lending test due to discriminatory and illegal credit practices. This booklet contains the federal financial institutions examination councils ffiec interagency fair lending examination procedures, and appropriate occ. Fdic consumer compliance examination manual september 2015. The federal reserve also provided several fact scenarios and commentary to better explain various fair lending risk scenarios. The magazine provides analysis of legislation, regulation and case law on a bimonthly basis. So, compliance professionals need to understand where statistics fit into the fair lending program. What are the top risk areas for national banks and federal savings associations. Fair lending magic was designed by lending experts with many years of field experience performing loan due diligence, underwriting, exam readiness consulting, quality assurance, and secondary market risk analysis.
Fair lending 101 info kit l fair lending compliance resource. Consumer compliance risk management guidance guidance. The sampling objectives portion of this booklet addresses matters that examiners must consider in determining an appropriate sampling approach as part of a banks supervisory strategy. Occ revises consigned items and services exam booklet on december 14, 2016, the occ announced via bulletin 201644 that it has issued a. Opportunity act, fair housing act, fair credit reporting act, fair debt. Common fair lending risks in mortgage and auto lending. The longterm goal of the infobase is to provide justintime training for new regulations and for other topics of specific concern to. Each report is accompanied by a guided interpretation led by. Interagency fair lending examination procedures ffiec.
References to national banks in this booklet also generally apply to federal branches. The revised management booklet provides guidance to examiners and outlines the principles of governance and risk management as they relate to it. Consolidated compliance manual pdf 18mb last updated. Fair lending compliance can be difficult but it doesnt have to be. Fair lending report 2016 consumer financial protection bureau. Cfpb identifies 2017 priorities in annual fair lending report. Other regulators focus on the safety and soundness of the financial institutions first.
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