ALEXANDRIA, Va. (2/23/15)--A webinar hosted by National Credit Union Administration staff Friday gave credit unions a look at how the agency conducts fair lending examinations.
It is illegal for lenders to discriminate based on race, color, national original, religion, sex, handicap or familial status, and the webinar provided a look at how the NCUA enforces related rules and regulations.
The NCUA supervises and examines federal credit unions with assets of $10 billion or less for compliance with fair lending laws. The Consumer Financial Protection Bureau supervises and examines those with $10 billion or more in assets for fair lending compliance.
Matt Biliouris, deputy director of the NCUA's Office of Consumer Protection, said the agency plans to conduct 25 fair lending exams and 50 offsite supervision contacts in 2015.
"Our fair lending exams are an extensive review of a credit union's compliance with fair lending laws. We follow the interagency fair lending examination procedures, which may include extensive transaction testing," he said. "Under our offsite supervision contacts, we review a credit union's compliance management system elements, without any transactional testing."
According to the NCUA, it selects federal credit unions for a fair lending exam or off-site supervision contact if they demonstrate: Home Mortgage Disclosure Act data outliers, member complaints, prior regulatory violations, general compliance risks, whistleblower complaints or receive recommendations from field examiners.
Prohibited practices include:
According to the NCUA, having an effective compliance management system consisting of board and management oversight; policies and procedures; staff training; monitoring, testing and corrective action; compliance audits; and member complaint response procedures are the best way to ensure fair lending compliance.
The webinar will be posted to the NCUA's website in the next two weeks.