Acting Comptroller speaks on Fair Lending supervision
Acting Comptroller Hsu gave two separate speeches on the latest efforts of the OCC in fair lending supervision as well as creating economic opportunity for “new Americans.”
Written by: Rob Ellis, Senior Compliance Consultant
On April 4, acting Comptroller of the Currency Michael J. Hsu presented his views at the Just Economy Conference hosted by the National Community Reinvestment Coalition. His speech focused on the latest developments of the Office of the Comptroller of the Currency (OCC) in its continuing efforts to elevate fairness in the financial industry.
He said the OCC has developed new methods to run screens on the data to identify potentially discriminatory conduct by OCC-supervised banks, such as redlining and the exclusion of communities of color. Comptroller Hsu further commented on the progress of the OCC in strengthening fair lending supervision. The OCC continues to deploy an enhanced-risk supervision process, using the fair lending risk assessment and Home Mortgage Disclosure Act data from Community Reinvestment Act assessment areas. The OCC has also implemented a program to provide more advanced, real-time support to fair lending reviews.
On April 10, Acting Comptroller of the Currency, Michael J. Hsu, discusses creating economic opportunity during a public meeting of the Financial Literacy and Education Commission (FLEC). Acting Comptroller Hsu highlighted the significance of financial literacy and inclusion for “new Americans,” drawing from his own experience as a child of immigrants. Hsu noted the need for financial institutions to support a system that is inclusive and equitable. Hsu urged financial institutions to expand services offered in languages other than English and to explore innovative means of accepting diverse forms of identification within the regulatory framework to facilitate greater access to financial services for foreign-born individuals who are more likely to be unbanked.
The presentation also stressed the need for mortgage financing alternatives that cater to the unique requirements of immigrant populations, including extending access to credit for individuals without traditional credit scores. Hsu specifically stressed the se of special purpose credit programs under ECOA and community partnerships to extend credit to new Americans.
Both speeches can be found at:
https://www.occ.gov/news-issuances/news-releases/2024/nr-occ-2024-38.html
https://www.occ.gov/news-issuances/news-releases/2024/nr-occ-2024-40.html
Please don’t hesitate to reach out to SCA to discuss how we can assist and support you in your efforts to ensure Fair Lending and how you can best be prepared for Examiner questions of how your products and services meet the complex requirements of immigrant populations. Please contact our Director, Bill Dolan, at WDolan@scapartnering.com or by phone at (617) 694-2617 and schedule a time to speak with us today.
