Created by the U.S. Congress in 1970, the National Cooperative Credit Union Administration is an independent federal agency that insures deposits at federally guaranteed cooperative credit union, secures the members who own cooperative credit union, and charters and controls federal credit unions.
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Fair Housing Act (FHA)

Federal Consumer Financial Protection Guide

Compliance ManagementCompliance Management Systems and Compliance Risk


Consumer Leasing Act (Regulation M).

Fair Credit Reporting Act (Regulation V).

Homeowners Protection Act (PMI Cancellation Act).

Military Lending Act (MLA).

Real Estate Settlement Procedures Act (Regulation X).

Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) (Regulation G).

Servicemembers Civil Relief Act (SCRA).

Small Dollar Lending and Payday Alternative Loans.

Truth in Lending Act (Regulation Z).


Equal Credit Opportunity Act (Regulation B).

Fair Housing Act (FHA).

Home Mortgage Disclosure Act (Regulation C).


Electronic Fund Transfer Act (Regulation E).

Expedited Funds Availability Act (Regulation CC).

Truth in Savings Act (NCUA Rules & Regulations Part 707).


Children's Online Privacy Protection Act.

Privacy of Consumer Financial Information (Regulation P).

Unfair, Deceptive, or Abusive Acts or Practices (UDAAP).

Electronic Signatures in Global and National Commerce Act (E-Sign Act).

Fair Housing Act (FHAct, 42 U.S.C. § 3601 et seq.), which is implemented by the Department of Housing and Urban Development's (HUD) guidelines (24 CFR Part 100), was enacted as Sections 800 to 820 of Title VIII of the Civil Rights Act of 1968, as amended. FHAct makes it illegal for loan providers to victimize anyone in making readily available a residential genuine estate-related deal or to prevent a candidate from submitting a loan application based on race, color, nationwide origin, religion, sex, familial status, or handicap.

In specific, FHAct applies to funding or purchasing a mortgage loan protected by domestic property. Specifically, a loan provider may not reject a loan or other financial assistance for the function of acquiring, constructing, improving, repairing, or preserving a house on any of the forbidden bases noted above. FHAct also makes it unlawful for a lending institution to use a forbidden basis to discriminate in setting the terms or conditions of credit, such as the loan quantity, rates of interest, or period of the loan on a prohibited basis.

Furthermore, a loan provider may not reveal, orally or in composing, a choice based upon any restricted elements or suggest that it will deal with candidates in a different way on a prohibited basis, even if the loan provider did not act upon that statement. A violation may still exist even if a lending institution treated applicants similarly.

In addition, due to the fact that residential real estate-related deals consist of any deals protected by domestic property, FHAct's restrictions (and regulatory requirements in particular locations, such as advertising) use to home equity credit lines as well as to home purchase and refinancing loans. These restrictions likewise use to the selling, brokering, or appraising of property real residential or commercial property and to secondary mortgage market activities. Consequently, a cooperative credit union's policies, procedures and practices including housing financing need to be broadly analyzed to guarantee that the cooperative credit union does not otherwise make not available or reject housing.

Sexual Preference and Gender Identity

Although FHAct does not expressly restrict discrimination based upon sexual preference or gender identity, HUD attended to gay, lesbian, bisexual, and transgender (LGBT) housing discrimination by providing the Equal Access to Housing in HUD Programs No Matter Sexual Orientation or Gender Identity Rule (Equal Access Rule, 77 Fed. Reg. 5662, Feb. 3, 2012). The Equal Access Rule applies to housing helped or insured by HUD, consequently affecting Federal Housing Administration-approved lenders and others getting involved in HUD programs. Specifically, a decision of eligibility for housing that is helped by HUD or subject to a mortgage insured by the Federal Housing Administration will be made in accordance with the eligibility requirements offered for such program by HUD, and such housing will be provided without regard to actual or perceived sexual orientation, gender identity, or marital status. (24 CFR § § 5.100 and 5.105( a)( 2 )). The Equal Access Rule ended up being effective on March 5, 2012.

Fair Housing Act (FHAct, 42 U.S.C. § 3601) can be found here

HUD's Regulations (24 CFR Part 100) can be found here

For Equal Access to Housing in HUD Programs Despite Sexual Preference and Gender Identity (Equal Access Rule) can be found here

NCUA Rules and Regulations 12 CFR § 701.31 can be found here

Definitions used in:

- FHAct (42 U.S.C. § 3602) can be found here.
- HUD Regulations (24 CFR § 100.20) can be found here.
- Subpart A - Generally Applicable Definitions and Requirements; Waivers (24 CFR § 5.100) can be discovered here.
- Subpart G - Discriminatory Effect of HUD Regulations (24 CFR § 100.500) can be found here.
- NCUA Rules and Regulations (12 CFR § 701.31( a)) can be found here

Associated Risks.
Exam Objectives.
Exam Procedures.
Checklist

Associated Risks

Compliance dangers can happen from negative assessments or investigations, which could cause public or non-public enforcement actions with substantial fines and/or penalties. Evidence of a "pattern or practice" of discrimination might result in a referral to the U.S. Department of Justice.

Reputational risk can happen when the credit union stops working to adhere to the FHAct and private or class action suits are brought versus the cooperative credit union it incurs fines and penalties through public enforcement actions or gets unfavorable publicity or decreased membership confidence as a result of failure to comply with the FHAct.

Examination Objectives

- Determine whether the cooperative credit union has developed policies, procedures, and internal controls to make sure that it remains in compliance with FHAct, its carrying out policy 24 CFR Part 100, and the pertinent NCUA guideline, 12 CFR § 701.31.
- Determine whether the cooperative credit union discriminated versus members of one or more secured classes in any element of its property genuine estate-related transactions.
- Determine whether the cooperative credit union is in compliance with those requirements of the FHAct set forth in HUD's carrying out policy and the NCUA's relevant regulation.

Exam Procedures

1. Determine whether the board has actually adopted policies, procedures, and basic underwriting standards worrying nondiscrimination in loaning and that officials evaluate nondiscrimination policies, loan underwriting standards, and related company practices routinely. In order to assure compliance with the FHAct, the policies, treatments, and requirements must, at a minimum state that the credit union does not discriminate in property genuine estate-related deals based upon (12 CFR § 701.31( b), 24 CFR § 100.50( b), 24 CFR § 5.100): - Race;.
- Color;.
- National origin;.
- Religion;.
- Sex;.
- Familial status; and,.
- Handicap.

2. Determine that the cooperative credit union has policies that forbid the staff members from making statements that would prevent the receipt or factor to consider of any application for a loan or other credit service.

3. Conduct interviews of loan officers and other workers or representatives in the domestic loaning procedure worrying adherence to and understanding of the credit union's nondiscrimination policies and treatments along with any pertinent operating practices.

4. Review any offered information concerning the geographic distribution of the cooperative credit union's loan originations with regard to the race and national original portions of the census tracts within its property real-estate lending area.

5. Review rejected mortgage loan applications to identify if the cooperative credit union has engaged in prohibited practices, including discrimination on the basis of: - The racial structure of an area;
- The income level of an area; or
- The language of a candidate( s).

6. Review the credit union's practices, records, and reports to determine if it sets more rigid terms (e.g. deposits, interest rates, terms, fees, loan quantities, and so on) for property genuine estate-related loans in certain geographic locations located fairly within its operational area ( § 701.31( b)( 3 )). If the credit union has set more stringent terms, carry out an evaluation of loans made in that geographic area to identify whether the cooperative credit union's usage of more rigid standards had a legally sufficient justification.
7. Determine that the credit union has not set an approximate limit on loan size and the earnings required before giving a loan.

8. Determine from the loan review whether the cooperative credit union makes a disproportionate variety of loans under one type of financing (e.g., FHA, VA, other alternative mortgage instruments).

9. Determine the credit union is not utilizing appraisals or the appraisal procedure to discriminate ( § 701.31( c)). Ensure the cooperative credit union avoids marking down assessed values, e.g., decreasing the evaluated value of a residential or commercial property due to its location or some negative comment on the appraisal form.
10. Review authorized and rejected loan applications to guarantee the cooperative credit union uniformly applied financial elements including however not limited to: - Income and financial obligation ratios;
- Credit rating;
- Security residential or commercial property;
- Neighborhood facilities;
- Personal possessions.

11. Review the appropriate loan records to determine whether the cooperative credit union administers the following without bias ( § 701.31): - Loan modifications;
- Loan presumptions;
- Additional collateral requirements;
- Late charges;
- Reinstatement fees;
- Collections.
- Visually determine whether the cooperative credit union has an Equal Housing Lender Poster notably placed in all of the cooperative credit union's offices and that all nondiscrimination notices comply with the requirements of § 701.31(d).