ALEXANDRIA, Va. NCUA said it will select a number of federal credit unions for a fair lending examination as it has in past years based on a number of factors including a credit union Home Mortgage Disclosure Act profile.
Most federal credit unions will not be selected for a fair lending examination or an off-site supervision contact this year, said NCUA in a new Letters To CUs.
NCUA will use multiple factors to determine whether a federal credit union demonstrates the potential for higher fair lending risk, including HMDA profiles, any records of previous fair lending violations, or credit unions that receive moderate or high risk ratings for compliance issues during their most recent exams.
NCUA also will consider whether a federal credit union demonstrates the potential for higher fair lending risk because of the volume, types or complexity of the products and services offered, types of communities served, and whether the federal credit union has been the subject of lending discrimination complaints.
Federal credit unions that demonstrate the potential for higher fair lending risk but are not HMDA outliers are subject to an off-site fair lending supervision contact. Credit unions will be notified in advance of any exams. If an off-site supervision contact indicates the possibility of discriminatory practices or significant findings of non-compliance with fair lending laws or regulations, a federal credit union will be considered for a fair lending exam during the next exam cycle.
Among the laws to be come under a Fair Lending Exam are: Equal Credit Opportunity Act (Regulation B); Home Mortgage Disclosure Act (Regulation C); and Fair Housing Act (FHA).
