Developments in Fair Lending Examinations

The OCC is using new fair lending examination procedures. In 1993, the OCC issued "interim" fair lending exam procedures and implemented the current era of fair lending examinations. Those procedures provided for the first time a clear framework for comparative file analysis and were the basis of fair lending examinations and analysis.

The OCC used these procedures for four years, and has now made changes to its fair lending examination procedures based on the experience gained using the interim procedures. OCC issued new fair lending examination procedures last fall to refine the '93 procedures and bring in the experiences learned since '93.

At the same time, the bank regulatory agencies - including OCC - are working through the FFIEC to develop uniform examination procedures for fair lending. A draft procedure actually exists, and is under review at the staff level. The draft may be ready to present to the agency heads for approval sometime this summer.

In spite of issuing its own procedures, the OCC is committed to issuance of uniform examination procedures with the other agencies. When issued, the uniform procedures will supercede OCC's procedures. Thus, at some point, all agency examiners will be using the same fair lending procedures.

Copyright © 1998 Compliance Action. Originally appeared in Compliance Action, Vol. 3, No. 8, 6/98