Fair Lending Toolkit
This Toolkit contains resources to help financial institutions reduce the risk of violations of the Equal Credit Opportunity Act and other fair lending laws. In particular, this Toolkit includes resources to help institutions implement a fair lending compliance program.
Fair lending laws are designed to ensure the consistent, fair and equitable treatment of all consumers engaged in lending transactions. The Equal Credit Opportunity Act ( www.practicallaw.com/5-501-6499) , which prohibits discrimination on the basis of race, gender, ethnicity and other characteristics, is the primary fair lending law that governs credit transactions. Two other fair lending laws, the Fair Housing Act ( www.practicallaw.com/8-543-4046) and the Home Mortgage Disclosure Act ( www.practicallaw.com/4-543-4048) , prohibit discrimination with respect to residential real estate-related transactions.
The federal agencies that enforce fair lending laws typically have assessed a lender’s compliance under both the disparate treatment and disparate impact legal theories of discrimination. Financial institutions can reduce the risk of administrative enforcement or legal claims by implementing policies and procedures to ensure that their lending activities comply with the anti-discrimination provisions of the applicable federal laws. This Fair Lending Toolkit provides several resources to help financial institutions comply with fair lending laws.