Thread Options
#832619 - 10/11/07 06:08 PM Fair Lending Exam
Padric Offline
100 Club
Padric
Joined: Feb 2006
Posts: 204
Has anyone undergone one lately? My search for fair lending nightmares (used in training) have come up with not a whole lot since the early 2000. It doesn't seem to be the hot issue that it once was and it doesn't appear that CRA challenges are prevalent in light of the sunshine provisions. Does anyone agree that the emphasis on Fair Lending from the 1990's has dimmed? I'm not saying it's not important, but seems to have perspective now vs. then.

Return to Top
Lending Compliance
#832648 - 10/11/07 06:25 PM Re: Fair Lending Exam Padric
Bagweaver Offline
Diamond Poster
Joined: Nov 2005
Posts: 2,409
SW GA
We're OTS regulated, and when they were in earlier this year, they looked at my latest fair lending review and didn't go further. Now I complete an extensive review following their procedures with very complete workpapers (hoping they'd use my review only) so they had lots of information to look at. They were satisfied with my review.

I'd rather stay on top of things than wait for this to become a "hot" issue again. My lenders have a tendency to not document as they should.
_________________________
Semiretired. Working parttime at Historic Westville as a tour guide.

Return to Top
#833066 - 10/11/07 10:23 PM Re: Fair Lending Exam Bagweaver
Padric Offline
100 Club
Padric
Joined: Feb 2006
Posts: 204
Thanks. It's the same with me. The mortgage loan problems currently in evidence nationally may stir it up again, but for now, it does not appear that discrimination resulted in loans that should never have been made!!! Doesn't that sounds strange?

Return to Top
#833079 - 10/11/07 10:41 PM Re: Fair Lending Exam Padric
trail hiker Offline
Gold Star
Joined: Jul 2007
Posts: 436
OTS has told us that the next exam will focus on Fair Lending. It is one of the 4 HOT buttons for the next exam. The examiner said they are BSA/AML/CIP; Fair Lending, Flood, and Compliance Management.

Return to Top
#833474 - 10/12/07 02:14 PM Re: Fair Lending Exam trail hiker
Nikita, CRCM Offline
100 Club
Nikita, CRCM
Joined: Jan 2001
Posts: 210
Richmond, VA, USA
OTS Southeast Region is requiring its institutions to have recent Fair Lending exams. If you don't have one on file, you will as it will be recommended in your report.

Return to Top
#833475 - 10/12/07 02:16 PM Re: Fair Lending Exam trail hiker
Nikita, CRCM Offline
100 Club
Nikita, CRCM
Joined: Jan 2001
Posts: 210
Richmond, VA, USA
OTS Southeast Region is requiring its institutions to have recent Fair Lending exams. If you don't have one on file, you will as it will be recommended in your report.

Return to Top
#833688 - 10/12/07 04:01 PM Re: Fair Lending Exam Nikita, CRCM
SavannahOne Offline
Diamond Poster
Joined: Sep 2005
Posts: 1,163
Georgia
Ditto Nikita on the OTS SE Region REQUIRING annual Fair Lending Audits.

Return to Top
#833701 - 10/12/07 04:09 PM Re: Fair Lending Exam Padric
Reads Regs Offline
Diamond Poster
Joined: Nov 2004
Posts: 2,292
Padric, have you seen some of these cases involving the U.S. Dept. of Justice?

The following link will take you to a case involving race and national origin.
http://www.usdoj.gov/crt/housing/documents/centier_pr.pdf

The following link will take you to a case involving a sexual harassment case filed under ECOA.
http://www.usdoj.gov/crt/housing/documents/1st_nationalbank_pr.html

The following link will take you to a case involving marital status discrimination.
http://www.usdoj.gov/crt/housing/documents/compass_pr.pdf

The following link will take you to a case involving car dealerships.

http://www.usdoj.gov/opa/pr/2007/August/07_crt_639.html

The following link will take you to information involving the NY State Attorney General and Countrywide.

http://www.oag.state.ny.us/press/2006/dec/dec05a_06.html

We are regulated by the OTS. During our 2006 exam, they asked us to conduct a fair lending exam using the FFIEC fair lending exam procedures. They said we didn't have to do them all by the next exam. We agreed to do a comparative file analysis for the next exam. When they came in for the 2007 exam, they reviewed what we did and were satisfied. We agreed to do a pricing review before our 2008 exam.
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

Return to Top
#834011 - 10/12/07 07:47 PM Re: Fair Lending Exam Reads Regs
SavannahOne Offline
Diamond Poster
Joined: Sep 2005
Posts: 1,163
Georgia
Related Question -
Does everyone share their Fair Lending Exams with the regulators?

As there is specific guidance stating there is no requirement to do so aren't we risking setting ourselves up (through voluntarily giving them the report) when we do or establishing an automatic red flag if one year we opt to keep it private?

Return to Top
#834098 - 10/12/07 08:47 PM Re: Fair Lending Exam SavannahOne
Bagweaver Offline
Diamond Poster
Joined: Nov 2005
Posts: 2,409
SW GA
I've always shared my fair lending reviews with my regulators - OCC and Fed at my former bank and the OTS at my current bank. I'd rather they look at the files in my review and possibly choose a few more rather than pull a full sample on their own. So far, I've never had a problem.
_________________________
Semiretired. Working parttime at Historic Westville as a tour guide.

Return to Top

Moderator:  Andy_Z