Program Overview
Introduction to Fair Lending (IFL) is intended for pre-commissioned compliance examiners. It addresses basic fair lending concepts and examination tasks required to conduct non-complex fair lending reviews.
Skills Taught
By the end of this course, students will have been taught how to:
- Develop an overview of an institution
- Identify inherent fair lending risk
- Assess applicable discrimination risk factors and any mitigating factors
- Summarize results of a fair lending review
- Document results of a fair lending review in FDIC’s Fair Lending Scope and Conclusions (FLSC) memorandum
Duration and Format
This course contains:
- 18 hours of Pre-course independent study
- 1 week of Facilitated classroom discussion/lectures including small group work, and case study assignments
Level and Credits
Basic
Continuing Education Unit (CEU): 3.3
Continuing Professional Education Unit (CPE): 39.8
Target Audience
The target audience for this course is pre-commissioned examiners. It is open to appropriate staff of the FDIC and partner government regulatory agencies. This course is not open to the public or staff of private banks.
Prerequisites and Prior Work Experience
FDIC participants should attend in accordance with the parameters outlined in the Examiner Training and Development Policy. State Banking Authority participants should have one to two months of experience in compliance examinations. This course is open to appropriate staff of the FDIC and partner government regulatory agencies. This course is not open to the public or staff of private banks.
Pre-Course Assignment
Prior to attending this course, participants will be required to complete the following pre-course assignments and bring them to class:
- View a series of nine existing videos that address the basics of fair lending reviews and complete review questions included in a self-study guide
- Complete several reading assignments
- Review documents provided for the case study bank and complete several initial subsections of the FLSC
Post Course Feedback
A Summary Evaluation Form (SEF) documenting each participant’s learning will be completed by an instructor with input from the participant. The SEF will be provided to the supervisor approximately 30 days after the session ends. Specifically, the SEF will address each participant’s technical skills, communication skills, and overall class participation.
Key Topics
- Introduction to Fair Lending
- Describe purpose of fair lending reviews
- Define key fair lending terms
- List prohibited bases
- Describe fair lending review process and use of FLSC
- Discuss strategies for obtaining information needed from bankers
- Developing an Institution Overview
- Describe a bank’s structure and management, supervisory history, CMS, loan product offerings, and demographic composition
- Document results in Section 1 of the FLSC except Credit and Market Operations subsection
- Assessing Level of Inherent Risk
- Identify potential inherent risks
- Determine whether there is minimal or more than minimal risk
- Complete Credit and Market Operations subsection of Section 1 of the FLSC
- Analyzing Discrimination Risk and Mitigating Factors
- Select loan products and areas for further analysis
- Determine applicable discrimination risk factors
- Analyze demographic data for discrimination risk factors
- Assess bank’s CMS for potential mitigating factors
- Determine whether discrimination risk factors are sufficiently offset by mitigating factors
- Document results in Section 2 of the FLSC
- Summarizing Fair Lending Review
- Summarize results of fair lending review
- Complete Section 5 of FLSC
Continuing Education Information
For information regarding administrative policies such as complaints and refunds, please contact Corporate University, Attn: NASBA Representative Ava Livas, Room A-3025, 3501 North Fairfax Drive, Arlington, VA 22226 (703) 562-2463.
The Federal Deposit Insurance Corporation is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org
The Federal Deposit Insurance Corporation (FDIC) is accredited by the International Association for Continuing Education and Training (IACET) (www.iacet.org). The FDIC complies with the ANSI/IACET Standard, which is recognized internationally as a standard of excellence in instructional practices. As a result of this accreditation, the FDIC is accredited to issue the IACET CEU.
More Information
For more information concerning course content and administration, please contact Joseph Ibarra or Sonya Staples.