EHL Logo and Member FDIC on Bank Forms

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Question:

Our primary regulator is the FDIC. Do we need to place the Member FDIC and Equal Housing Lender logo's on bank forms that go out to deposit and/or lending customers (form letters, adverse action notices, etc)?

Answer:

First, let's look at the Equal Housing Lender logo requirement:
The Fair Housing Act defines an "advertisement" as a promotion for any loan for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling or any loan secured by a dwelling.

Section 338.4(a) of the FDIC Rules and Regulations require the Equal Housing Lender to be used in any written or visual advertisement.

A form letter may be an advertisement, depending on what is presented. An AAN is definitely not an advertisement.

Now lets look at the Member FDIC requirement:
Section 328.3(c) exempts certain advertisements from the requirement to include the official statement. The exemptions include:(2) Bank supplies such as stationery (except when used for circular letters), envelopes, deposit slips, checks, drafts, signature cards, deposit passbooks, certificates of deposit, etc.;

(12) Advertisements relating to the making of loans by the bank or loan services;

Once again, a form letter may be an advertisement, depending on what is presented, and may trigger the Member FDIC requirement. An AAN is definitely not an advertisement.

First published on BankersOnline.com 1/2/06