A rule that takes effect Jan. 31 will not protect the information a bank produces when it polices its fair-lending compliance, according to industry lawyers.

"This is a horrible rule," said Andrew L. Sandler, a partner in the Washington law firm of Skadden, Arps, Slate, Meagher & Flom. "It is hard to imagine a more disappointing result for lenders seeking to use self-testing to ensure compliance with fair-lending laws."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.