Fair Housing Act (FHA).
Created by the U.S. Congress in 1970, the National Cooperative Credit Union Administration is an independent federal company that guarantees deposits at federally insured cooperative credit union, safeguards the members who own credit unions, and charters and controls federal cooperative credit union.
Mission & Values
madmartian.com
Leadership
Speaker Request Form
Historical Timeline
Workplace Resolutions
Careers
Business Opportunities
Open Government
Inspector General
Budget & Performance
Letters to Credit Unions & Other Guidance
Examination Program
Rulemakings & Proposals for Comment
Legal Opinions
Rules & Regulations
Regulatory & Compliance Resources
Supervisory Review Committee
Board Appeals
Corporate Credit Unions
Regulatory Reporting
Manuals & Guides
Examination Modernization Initiatives
CUSO Activities
Credit Union & Corporate Call Report Data
Chartering & Mergers
CUSO & Economic Data
Research a Credit Union
ACCESS
Credit Union Resources & Expansion
Conservatorships & Liquidations
Share Insurance Fund
Corporate System Resolution
Guaranteed Notes Program
Central Liquidity Facility
Consumer Assistance Center
Fraud Prevention Center
Share Insurance Coverage
MyCreditUnion.gov
Credit Union Locator
Press Releases
Speeches & Testimonies
Publications & Reports
Board Meetings, Agendas, & Results
Events
Enforcement Actions
Budget & Supplementary Materials
Downloadable Graphics
NCUA's Information Security Examination and Cybersecurity Assessment Program
ACET and Other Assessment Tools
Supply Chain Risk Management (SCRM)
Cyber Incident Reporting Guide
Report a Cybersecurity Incident
NCUA's Regulations and Guidance
References & Resources
1. Home
2. > Regulation and Supervision
3. > Manuals and Guides
4. > Federal Consumer Financial Protection Guide
5. > Compliance Management
Feedback
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) regulations (24 CFR Part 100), was enacted as Sections 800 to 820 of Title VIII of the Civil Liberty Act of 1968, as changed. FHAct makes it illegal for lenders to discriminate against anybody in offering a property real estate-related deal or to prevent an applicant from sending a loan application based upon race, color, national origin, faith, sex, familial status, or handicap.
In particular, FHAct applies to funding or purchasing a mortgage loan secured by domestic realty. Specifically, a lending institution may not deny a loan or other financial help for the purpose of acquiring, constructing, enhancing, fixing, or maintaining a house on any of the restricted bases kept in mind above. FHAct also makes it illegal for a lending institution to use a restricted basis to discriminate in setting the terms or conditions of credit, such as the loan quantity, rate of interest, or period of the loan on a prohibited basis.
Furthermore, a lender might not express, orally or in composing, a preference based upon any forbidden aspects or show that it will deal with candidates in a different way on a restricted basis, even if the loan provider did not act upon that statement. A violation might still exist even if a lending institution treated applicants equally.
In addition, due to the fact that property real estate-related deals consist of any deals protected by property real estate, FHAct's prohibitions (and regulatory requirements in particular locations, such as marketing) apply to home equity lines of credit in addition to to home purchase and refinancing loans. These restrictions likewise apply to the selling, brokering, or appraising of domestic genuine residential or commercial property and to secondary mortgage market activities. Consequently, a cooperative credit union's policies, treatments and practices including housing finance ought to be broadly taken a look at to make sure that the credit union does not otherwise make unavailable or reject housing.
Sexual Orientation and Gender Identity
Although FHAct does not specifically forbid discrimination based upon sexual preference or gender identity, HUD addressed gay, lesbian, bisexual, and transgender (LGBT) housing discrimination by releasing the Equal Access to Housing in HUD Programs Despite Sexual Orientation or Gender Identity Rule (Equal Access Rule, 77 Fed. Reg. 5662, Feb. 3, 2012). The Equal Access Rule applies to housing assisted or guaranteed by HUD, therefore impacting Federal Housing Administration-approved loan providers and others getting involved in HUD programs. Specifically, a determination of eligibility for housing that is helped by HUD or based on a mortgage guaranteed by the Federal Housing Administration shall be made in accordance with the eligibility requirements offered such program by HUD, and such housing shall be made offered without regard to actual or viewed sexual preference, gender identity, or marital status. (24 CFR § § 5.100 and 5.105( a)( 2 )). The Equal Access Rule became reliable on March 5, 2012.
Fair Housing Act (FHAct, 42 U.S.C. § 3601) can be discovered here
HUD's Regulations (24 CFR Part 100) can be found here
For Equal Access to Housing in HUD Programs Despite Sexual Orientation 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 discovered 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 found here.
- Subpart G - Discriminatory Effect of HUD Regulations (24 CFR § 100.500) can be discovered here.
- NCUA Rules and Regulations (12 CFR § 701.31( a)) can be found here
Associated Risks. Exam Objectives. Exam Procedures. Checklist
Associated Risks
Compliance threats can occur from adverse evaluations or examinations, which could lead to public or non-public enforcement actions with significant fines and/or charges. Evidence of a "pattern or practice" of discrimination may result in a recommendation to the U.S. Department of Justice.
Reputational risk can happen when the cooperative credit union fails to comply with the FHAct and individual or class action claims are brought versus the credit union it incurs fines and charges through public enforcement actions or receives unfavorable promotion or declined membership confidence as an outcome of failure to adhere to the FHAct.
Examination Objectives
- Determine whether the cooperative credit union has actually established policies, treatments, and internal controls to ensure that it remains in compliance with FHAct, its implementing policy 24 CFR Part 100, and the relevant NCUA regulation, 12 CFR § 701.31. - Determine whether the cooperative credit union victimized members of one or more safeguarded classes in any aspect of its domestic real estate-related transactions.
- Determine whether the credit union is in compliance with those requirements of the FHAct set forth in HUD's implementing regulation and the NCUA's relevant regulation.
Exam Procedures
1. Determine whether the board has actually embraced policies, treatments, and basic underwriting standards concerning nondiscrimination in financing and that authorities review nondiscrimination policies, loan underwriting standards, and associated organization practices regularly. In order to assure compliance with the FHAct, the policies, procedures, and requirements must, at a minimum state that the credit union does not discriminate in residential real 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 credit union has policies that restrict the staff members from making declarations that would dissuade the invoice or consideration of any application for a loan or other credit service.
3. Conduct interviews of loan officers and other employees or agents in the property loaning process concerning adherence to and understanding of the credit union's nondiscrimination policies and treatments along with any appropriate operating practices.
4. Review any available information concerning the geographic circulation of the credit union's loan originations with regard to the race and national original portions of the census tracts within its domestic real-estate loaning area.
5. Review turned down mortgage loan applications to figure out if the cooperative credit union has actually taken part in prohibited practices, consisting of discrimination on the basis of: - The racial structure of a location; - The earnings level of an area; or
- The language of a candidate( s).
6. Review the credit union's practices, records, and reports to figure out if it sets more strict terms (e.g. down payments, rate of interest, terms, costs, loan quantities, and so on) for domestic genuine estate-related loans in specific geographical areas situated reasonably within its operational area ( § 701.31( b)( 3 )). If the has actually set more strict terms, conduct a review of loans made because geographical location to determine whether the cooperative credit union's use of more strict standards had a legally adequate reason.
- Determine that the cooperative credit union has not set an approximate limitation on loan size and the earnings needed before approving a loan.
8. Determine from the loan review whether the cooperative credit union makes a disproportionate number of loans under one kind of financing (e.g., FHA, VA, other alternative mortgage instruments).
scaryhalloween.com
9. Determine the credit union is not using appraisals or the appraisal process to discriminate ( § 701.31( c)). Ensure the cooperative credit union refrains from discounting evaluated worths, e.g., decreasing the assessed worth of a residential or commercial property due to its area or some unfavorable comment on the appraisal form. - Review approved and declined loan applications to make sure the cooperative credit union uniformly used financial elements including however not limited to: - Income and debt ratios;
- Credit history;
- Security residential or commercial property;
- Neighborhood facilities;
- Personal assets.
11. Review the proper loan records to determine whether the cooperative credit union administers the following without predisposition ( § 701.31): - Loan modifications; - Loan presumptions;
- Additional security requirements;
- Late charges;
- Reinstatement charges;
- Collections.
- Visually identify whether the cooperative credit union has an Equal Housing Lender Poster conspicuously placed in all of the credit union's workplaces and that all nondiscrimination notices comply with the requirements of § 701.31(d).