In a new letter to federal credit unions (13-FCU-02), the National Credit Union Administration said it will select a number of federal credit unions to undergo a fair lending examination this year, and outlined the factors that agency examiners will use to determine whether a federal credit union should be subject to further fair lending reviews.
Credit Union National Association President/CEO Bill Cheney said CUNA will follow up with the agency on fair lending issues to provide more information to the credit union system. “CUNA recognizes credit unions must obey the law, but we have urged NCUA to refrain from directives and sanctions unless, based on measurable factors, the agency can demonstrate material compliance issues exist. We will continue to press this view,” he added.
Federal credit unions that are selected for a fair lending exam or off-site supervision contact “will have demonstrated the potential for a higher fair lending risk” based on certain criteria discussed in the letter, including fair lending violations and general compliance risks, the letter noted.
Credit unions’ whose Home Mortgage Disclosure Act report results fall outside the normal range for pricing, denials, withdrawals, or lending terms when compared to other financial institutions may also be subject to these examinations, the agency said.continue reading »