Removal of Transferred Office of Thrift Supervision (OTS) Regulations Regarding Nondiscrimination Requirements
| Citation | 86 FR 8082 |
| Record Number | 2020-28452 |
| Published date | 03 February 2021 |
| Section | Rules and Regulations |
| Court | Federal Deposit Insurance Corporation |
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1
Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010).
2
Codified at 12 U.S.C. 5411.
3
Codified at 12 U.S.C. 5414(b).
4
Codified at 12 U.S.C. 5414(c).
5
76 FR 39247 (July 6, 2011).
6
Codified at 12 U.S.C. 5412(b)(2)(B)(i)(II).
7
12 U.S.C. 1813(q).
8
76 FR 47652 (Aug. 5, 2011).
9
12 U.S.C. 5414(b)(3).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 338 and 390
RIN 3064–AF35
Removal of Transferred Office of Thrift
Supervision (OTS) Regulations
Regarding Nondiscrimination
Requirements
AGENCY
: Federal Deposit Insurance
Corporation (FDIC).
ACTION
: Final rule.
SUMMARY
: The Federal Deposit
Insurance Corporation (FDIC) is
rescinding and removing its regulation
titled ‘‘Nondiscrimination
Requirements’’ and amending its
regulation titled ‘‘Fair Housing’’ to make
it applicable to State savings
associations. These actions will
streamline the FDIC’s rules by
eliminating unnecessary, inconsistent,
and duplicative regulations, and ensure
insured State nonmember banks and
State savings associations generally will
be subject to the same
nondiscrimination requirements.
DATES
: The final rule is effective on
March 5, 2021. Compliance with 12 CFR
338.4(b) regarding displaying the
current address of the FDIC’s Consumer
Response Center on an Equal Housing
Lender poster is mandatory on February
3, 2022.
FOR FURTHER INFORMATION CONTACT
:
Navid Choudhury, Counsel, Legal
Division, (202) 898–6526, nchoudhury@
fdic.gov; Jamie Goodson, Senior Policy
Analyst, (202) 898–6685, jagoodson@
fdic.gov; Ernestine Ward, Policy
Analyst, (202) 898–3812, erward@
fdic.gov; and Evelyn Manley, Fair
Lending Specialist, (202) 898–3775,
emanley@fdic.gov, Division of Depositor
and Consumer Protection.
SUPPLEMENTARY INFORMATION
:
I. Background
Title III of the Dodd-Frank Act
1
provided for a substantial reorganization
of the regulation of State and Federal
savings associations and their holding
companies. Beginning July 21, 2011, the
transfer date established by section 311
of the Dodd-Frank Act,
2
the powers,
duties, and functions formerly
performed by the OTS were divided
among the FDIC, as to State savings
associations, the Office of the
Comptroller of the Currency (OCC), as to
Federal savings associations, and the
Board of Governors of the Federal
Reserve System (FRB), as to savings and
loan holding companies. Section 316(b)
of the Dodd-Frank Act
3
provides the
manner of treatment for all orders,
resolutions, determinations, regulations,
and advisory materials that had been
issued, made, prescribed, or allowed to
become effective by the OTS. Section
316(b) states that if the materials were
in effect on the day before the transfer
date, they continue to be in effect and
are enforceable by or against the
appropriate successor agency until they
are modified, terminated, set aside, or
superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
Section 316(c) of the Dodd-Frank
Act
4
further directed the FDIC and the
OCC to consult with one another and to
publish a list of the continued OTS
regulations which would be enforced by
the FDIC and the OCC, respectively. On
June 14, 2011, the FDIC’s Board of
Directors approved a ‘‘List of OTS
Regulations to be Enforced by the OCC
and the FDIC Pursuant to the Dodd-
Frank Wall Street Reform and Consumer
Protection Act.’’ This list was published
by the FDIC and the OCC as a Joint
Notice in the Federal Register on July
6, 2011.
5
Although section 312(b)(2)(B)(i)(II) of
the Dodd-Frank Act
6
granted the OCC
rulemaking authority relating to both
State and Federal savings associations,
the Dodd-Frank Act did not generally
affect the FDIC’s existing authority to
issue regulations under the Federal
Deposit Insurance Act (FDI Act) and
other laws as the ‘‘appropriate Federal
banking agency’’ or under similar
statutory terminology. Section 312(c) of
the Dodd-Frank Act amended the
definition of ‘‘appropriate Federal
banking agency’’ contained in section
3(q) of the FDI Act
7
to add State savings
associations to the list of entities for
which the FDIC is designated as the
‘‘appropriate Federal banking agency.’’
As a result, except in limited
circumstances in which certain
rulemaking authority is specifically
given to another agency, when the FDIC
acts as the designated ‘‘appropriate
Federal banking agency’’ (or under
similar terminology) for State savings
associations, as it does here, the FDIC is
generally authorized to issue, modify
and rescind regulations involving such
associations, insured State nonmember
banks, and insured branches of foreign
banks.
As noted, on June 14, 2011, operating
pursuant to this authority, the FDIC’s
Board of Directors reissued and
redesignated certain transferred OTS
regulations. These transferred OTS
regulations were published as new FDIC
regulations in the Federal Register on
August 5, 2011.
8
When it republished
the transferred OTS regulations as new
FDIC regulations, the FDIC specifically
noted that its staff would evaluate the
transferred OTS regulations and might
later recommend incorporating them
into other FDIC regulations, amending
them, or rescinding them, as
appropriate.
One of the OTS rules transferred to
the FDIC requires State savings
associations to not discriminate with
respect to lending, employment, and
other services provided. The OTS rule,
formerly found at 12 CFR part 528 (part
528), was transferred to the FDIC with
only technical changes and is now
found in the FDIC’s rules at part 390,
subpart G, entitled ‘‘Nondiscrimination
Requirements.’’
II. The Proposal
A. Removal of Part 390, Subpart G,
Nondiscrimination Requirements
On September 25, 2020, the FDIC
published a notice of proposed
rulemaking (NPR or ‘‘proposal’’)
regarding the removal of part 390,
subpart G (85 FR 60389). Although few
provisions of part 390, subpart G, have
a direct counterpart within the FDIC’s
regulations, the provisions are largely
duplicative of regulations implementing
Federal laws (Equal Credit Opportunity
Act (ECOA), Fair Housing Act (FHA),
Equal Employment Opportunity Act
(EEOA), and other laws concerning
nondiscrimination in lending,
employment, and services)
implemented by other agencies.
Regarding the functions of the former
OTS that were transferred to the FDIC,
section 316(b)(3) of the Dodd-Frank
Act
9
provides that the former OTS
regulations will be enforceable by the
FDIC until they are modified,
terminated, set aside, or superseded in
accordance with applicable law. After
careful review of part 390, subpart G,
the FDIC, as the appropriate Federal
banking agency for State savings
associations, proposed to rescind and
remove part 390, subpart G, in its
entirety, because, as discussed in the
NPR, it is duplicative, unnecessary, and
burdensome to require State savings
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12 U.S.C. 1813(b)(3).
11
The poster is available to both insured State
nonmember banks and State savings associations.
Moreover, the current CRC mailing address is
correctly stated in FDIC regulations applicable to
State savings associations. 12 CFR 390.146.
12
Currently, the mailing address for the
Consumer Response Center (1100 Walnut St., Box
#11 Kansas City, MO 64106) is provided at https://
www.fdic.gov/consumers/assistance/
filecomplaint.html. Since May 31, 2012, Regulation
B has required the use of that address in adverse
action notices, as applicable. See Board of
Governors of the Federal Reserve System, Final
Rule, Equal Credit Opportunity, 76 FR 31451 (Jun.
1, 2011).
associations to comply with additional
requirements to which insured State
nonmember banks are not subject. The
FDIC received no comments on the
proposal to rescind and remove part
390, subpart G.
For a statement of the rationale for
rescission and removal of each section
of subpart G, the reader is referred to the
fulsome explanations provided in the
NPR, which the FDIC references here as
the basis for finalizing the regulations as
proposed. In several instances, the
proposal to remove a specific section of
subpart G was coupled with a proposed
amendment to part 338 of the FDIC’s
regulations. These amendments are also
discussed below.
B. Amendments to Part 338 Fair
Housing
The FDIC’s part 338, Fair Housing,
applies to insured State nonmember
banks and addresses discrimination in
advertising and recordkeeping
requirements under ECOA and the
Home Mortgage Disclosure Act (HMDA).
The FDIC proposed to make technical
conforming edits to part 338 to
encompass State savings associations
and update the regulation. In short, the
FDIC proposed to: (1) Revise § 338.1 to
reflect that the advertising provisions of
subpart A apply to State savings
associations and their subsidiaries, to
conform to and reflect the scope of
FDIC’s current supervisory
responsibilities as the appropriate
Federal banking agency for State savings
associations; (2) in § 338.2, add a
defined term ‘‘FDIC-supervised
institution,’’ defined to mean ‘‘either a
bank [defined in § 338.2(a) to mean ‘‘an
insured State nonmember bank as
defined in section 3 of the Federal
Deposit Insurance Act’’] or a State
savings association’’; (3) add a new
subsection to define ‘‘State savings
association’’ as having ‘‘the same
meaning as in section 3(b)(3) of the
Federal Deposit Insurance Act;’’
10
(4)
make conforming technical edits
throughout, including replacing the
term ‘‘FDIC-supervised institution’’ or
‘‘institution’’ in place of ‘‘bank’’
throughout the rule where necessary
and revising references to the FRB’s 12
CFR parts 202 and 203 throughout part
338 to refer to the Bureau of Consumer
Financial Protection’s (CFPB) 12 CFR
parts 1002 and 1003, respectively; and
(5) amend § 338.4 to update the text
required for the Equal Housing Lender
poster to the correct address for the
FDIC Consumer Response Center. The
FDIC received no comments on the
proposal to amend part 338.
The Supplementary Information
section of this final rule sets forth the
rationales for the amendments to the
FDIC’s regulations located in part 338
because, as proposed, the final rule
revises FDIC regulations that will
remain in place, albeit in an amended
form.
1. Section 338.1—Purpose
Section 338.1 states that its purposes
are to prohibit insured State nonmember
banks from engaging in discriminatory
advertising with regard to residential
real estate-related transactions and
require them to publicly display either
the Equal Housing Lender poster set
forth in § 338.4(b) of the FDIC’s
regulations or the Equal Housing
Opportunity poster prescribed in 24
CFR part 110 in HUD’s regulations. The
FDIC proposed to amend § 338.1 to
change references to ‘‘insured State
nonmember banks’’ to refer to ‘‘FDIC-
supervised institutions’’ to reflect that
§ 338.1 applies to all institutions for
which the FDIC is the appropriate
Federal banking agency.
2. Section 338.2—Definitions
Applicable to This Subpart
Section 338.2 defines terms used in
subpart A of part 338, including the
term ‘‘bank’’ defined in § 338.2(a) to
mean ‘‘an insured state nonmember
bank as defined in section 3 of the
Federal Deposit Insurance Act.’’ The
FDIC proposed to add a new defined
term ‘‘FDIC-supervised institution’’
meaning a bank or a State savings
association to § 338.2(c) and to add to
§ 338.2(f), a new defined term ‘‘State
savings association’’ having ‘‘the same
meaning as in section (3)(b)(3) of the
Federal Deposit Insurance Act, 12
U.S.C. 1813(b)(3).’’ The FDIC also
proposed to make conforming technical
edits to other subsections in § 338.2 to
reflect the re-ordering of definitions.
3. Section 338.3—Nondiscriminatory
Advertising
Section 338.3 provides certain
requirements with respect to dwelling-
related advertisements to reflect the
bank’s nondiscrimination lending
practice and prohibits such
advertisements from including ‘‘words,
symbols, models, or other forms of
communication which express, imply,
or suggest a discriminatory preference
or policy of exclusion in violation of the
provisions of the FHA or ECOA. To
reflect that § 338.3 applies to all
institutions for which the FDIC is the
appropriate Federal banking agency, the
FDIC proposed to amend § 338.3 to
change references to ‘‘bank’’ to refer to
‘‘FDIC-supervised institution.’’
4. Section 338.4—Fair Housing Poster
Section 338.4(a) requires insured
State nonmember banks engaged in
extending dwelling-related loans to
conspicuously display either an Equal
Housing Lender poster or an Equal
Housing Opportunity poster ‘‘in a
central location within the bank where
deposits are received or where such
loans are made in a manner clearly
visible to the general public entering the
area, where the poster is displayed.’’
This requirement is substantially similar
to the requirement in § 390.146 for State
savings associations to display an Equal
Housing Lender poster, which the FDIC
proposed to rescind and remove. To
reflect that § 338.4(a) applies to all
institutions for which the FDIC is the
appropriate Federal banking agency, the
FDIC proposed to amend § 338.4(a) to
change references to ‘‘insured State
nonmember banks’’ to refer to ‘‘FDIC-
supervised institutions.’’
Section 338.4(b) sets forth the
required text of the FDIC’s Equal
Housing Lender poster, including the
former mailing address of the FDIC’s
Consumer Response Center (CRC),
formatted as a Portable Document
Format (PDF) image. When the CRC
mailing address changed in 2011, the
FDIC made available to FDIC-supervised
institutions an Equal Housing Lender
poster with the correct address of the
CRC, both in English and in Spanish.
11
However, because the CRC mailing
address may change in the future, the
FDIC proposed to amend § 338.4(b) to
reflect that the mailing address stated on
the Equal Housing Lender poster should
be the address for the CRC stated on the
FDIC’s website at www.fdic.gov.
12
Furthermore, the FDIC proposed to set
forth the required text of the Equal
Housing Lender poster in § 338.4(b) as
a text statement rather than as a PDF
image.
To assist FDIC-supervised
institutions, the FDIC expects to
continue to provide them with access to
a poster stating the required text,
including the accurate CRC mailing
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This requirement relates to the collection of
information for monitoring purposes required by 12
CFR 1002.13.
14
Pursuant to §338.6(b), ‘‘controlled entity’’
means ‘‘a corporation, partnership, association, or
other business entity with respect to which a bank
possesses, directly or indirectly, the power to direct
or cause the direction of management and policies,
whether through the ownership of voting securities,
by contract, or otherwise.’’
15
FDIC-supervised institutions are set forth in 12
U.S.C. 1813(q)(2).
16
FDIC Call Report data, June 30, 2020.
address. With the FDIC adopting the
proposal as final, no change to posters
would be required of FDIC-supervised
institutions that use an Equal Housing
Lender poster obtained from the FDIC,
because the CRC mailing address was
updated in 2011. The FDIC believes that
few insured State nonmember banks
make their own Equal Housing Lender
poster based on the text of § 338.4(b).
Nonetheless, to facilitate the transition
to the updated poster, the FDIC is
providing a one-year transition period
for FDIC-supervised institutions to
change their posters to reflect the
current CRC mailing address, if needed.
That is, the effective date of § 338.4(b),
as amended, is one year after this final
rule amending the provision is
published in the Federal Register.
5. Section 338.5—Purpose
Section 338.5 states that its purpose is
to notify insured State nonmember
banks of their duty both to collect and
retain certain information about a home
loan applicant’s personal characteristics
in accordance with Regulation B and to
maintain, update and report a register of
home loan applications in accordance
with Regulation C. To reflect that
§ 338.5 applies to all institutions for
which the FDIC is the appropriate
Federal banking agency, the FDIC
proposed to amend § 338.5 to change
references to ‘‘insured State nonmember
banks’’ to refer to ‘‘FDIC-supervised
institutions.’’ The FDIC also proposed to
make technical amendments to § 338.5
to reflect that Regulation B and
Regulation C have been re-designated as
12 CFR part 1002 and 12 CFR part 1003,
respectively, and are implemented by
the CFPB.
6. Section 338.6—Definitions
Applicable to This Subpart
Section 338.6 defines terms used in
subpart B of part 338, including the
term ‘‘bank’’ defined in § 338.6(a) to
mean ‘‘an insured State nonmember
bank as defined in section 3 of the
Federal Deposit Insurance Act.’’ The
FDIC proposed to add to § 338.2(c) a
new defined term ‘‘FDIC-supervised
institution’’ meaning a bank or a State
savings association and add to
§ 338.6(d) a new defined term ‘‘State
savings association’’ having ‘‘the same
meaning as in section (3)(b)(3) of the
Federal Deposit Insurance Act, 12
U.S.C. 1813(b)(3).’’
7. Section 338.7—Recordkeeping
Requirements
Section 338.7 requires banks that
receive an application for credit
primarily for the purchase or
refinancing of a dwelling occupied or to
be occupied by the applicant as a
principal residence where the extension
of credit will be secured by the dwelling
to request and retain the monitoring
information required by Regulation B.
13
To reflect that § 338.7 applies to all
institutions for which the FDIC is the
appropriate Federal banking agency, the
FDIC proposed to amend § 338.7 to
change references to ‘‘bank’’ to refer to
‘‘FDIC-supervised institution.’’ The
FDIC also proposed to make technical
amendments to § 338.7 to reflect that
Regulation B has been re-designated as
12 CFR part 1002 and is implemented
by the CFPB.
8. Section 338.8— Compilation of Loan
Data in Register Format
Section 338.8 requires banks and
other lenders required to file a HMDA
loan/application register (LAR) with the
FDIC to maintain, update and report
such LAR in accordance with
Regulation C. To reflect that § 338.8
applies to all institutions for which the
FDIC is the appropriate Federal banking
agency, the FDIC proposed to amend
§ 338.8 to change references to ‘‘bank’’
to refer to ‘‘FDIC-supervised
institution.’’ Additionally, to reflect
amendments made to Regulation C
regarding the responsibilities of a
financial institution with respect to
HMDA LAR data, the FDIC proposed to
amend § 338.8 to require banks and
other lenders required to file a HMDA
LAR with the FDIC to collect, record,
and report such LAR in accordance with
Regulation C. The FDIC also proposed to
make technical amendments to § 338.8
to reflect that Regulation C has been re-
designated as 12 CFR part 1003 and is
implemented by the CFPB.
9. Section 338.9—Mortgage Lending of a
Controlled Entity
Section 338.9 establishes
requirements that apply if a bank refers
applicants to a ‘‘controlled entity,’’ as
defined in § 338.6, and purchases any
home purchase loans or home
improvement loans (as defined in
Regulation C) that are originated by the
controlled entity, as a condition to
transacting any business with the
controlled entity.
14
In such cases,
§ 338.9 provides that the bank must
require the controlled entity to enter
into a written agreement with the bank
that states that the controlled entity
must comply with the requirements of
§§ 338.3, 338.4 and 338.7 and, if the
controlled entity is subject to Regulation
C, § 338.8. Further, the written
agreement must provide that the
controlled entity must open its books
and records to FDIC examination and
comply with all FDIC instructions and
orders with respect to its home loan
practices.
Because this final rule is intended to
rescind and remove former OTS
regulations that are duplicative of
regulations under ECOA, FHA, or
EEOA, the FDIC did not propose to
impose substantive requirements
regarding the business transactions
between a State savings association and
any entity it controls and therefore did
not propose to replace the term ‘‘bank’’
with the term ‘‘FDIC-supervised
institution’’ in § 338.9. However, the
FDIC proposed to make technical
amendments to § 338.9 to reflect that
Regulation C has been re-designated as
12 CFR part 1003 and is implemented
by the CFPB.
III. Comments
The FDIC received no comments on
the rescission and removal of part 390,
subpart G, nor to the amendments to
part 338.
IV. The Final Rule
For the reasons stated herein and in
the NPR, the FDIC is adopting the
proposal as proposed.
V. Expected Effects
As of June 30, 2020, the FDIC
supervised 3,270 depository
institutions,
15
of which 35 are State
savings associations.
16
The final rule rescinds §§ 390.140 and
390.141. As discussed previously, these
sections include definitions and cross-
references to other parts of section 390,
so their rescission has no independent
significance for institutions or
applicants, but rather is a technical
amendment associated with the
rescission of subpart G of part 390 in its
entirety.
The final rule rescinds § 390.142. As
discussed in the NPR, this section has
substantial overlap with the
requirements of ECOA and Regulation B
and the FHA and HUD’s FHA
regulations. Therefore, the FDIC
believes that these aspects of the final
rule are unlikely to significantly affect
FDIC-supervised institutions or
applicants.
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See, e.g., 15 U.S.C. 1691(a); 42 U.S.C. 3605; 12
CFR 1002.4; 24 CFR 100.120.
The final rule rescinds § 390.143. As
discussed in the NPR, aspects of
§ 390.143 are either duplicative of
prohibitions under the general fair
lending laws. With regard to
§ 390.143(b), the rule reduces
compliance requirements associated
with maintaining and distributing
relevant paperwork. The FDIC believes
that this is likely to pose a relatively
small benefit to the 35 institutions to
which it applies. Further, the FDIC
believes that it is unlikely that the
rescission of the requirement to
establish, maintain, and distribute upon
request nondiscriminatory loan
underwriting standards for these 35
State savings associations would lead to
an increase in discriminatory lending
behavior because these institutions are
still subject to the general fair lending
laws. Therefore, the FDIC does not
believe that this aspect of the final rule,
if adopted, is likely to have substantive
effects on FDIC-supervised institutions
or applicants.
The final rule rescinds § 390.144. As
discussed in the NPR, Section
390.144(a) is substantially similar to,
and duplicative of, prohibitions under
the general Federal fair lending laws.
17
The FDIC also believes that the
requirement to post an Equal Housing
Lender poster, discussed above in
connection with § 338.4, serves a
substantially similar purpose as the
requirement to ‘‘inform each inquirer of
his or her right to file a written loan
application’’ in § 390.144(b). Therefore,
the FDIC believes that the rescission of
§ 390.144 is unlikely to have any
substantive effect on FDIC-supervised
institutions or applicants.
The final rule rescinds § 390.145. As
discussed in the NPR, Section 390.145
is substantially similar to § 338.4 and
the rule amends § 338.4 to cover State
savings associations in addition to
insured State nonmember banks.
Therefore, the FDIC believes that this
aspect of the final rule is unlikely to
have any substantive effect on FDIC-
supervised institutions or applicants.
The final rule rescinds § 390.146. As
discussed in the NPR, the requirements
of § 390.146 are substantially similar to
the requirements applicable to insured
State nonmember banks under § 338.4.
Section 338.4, however, unlike
§ 390.146, does not include a
‘‘recommendation’’ that a Spanish-
language version of the Equal Housing
Lender poster be posted in offices
serving areas with a substantial
Spanish-speaking population. The FDIC
does, however, make a Spanish-
language poster available to the
institutions it supervises. Given the
substantive similarity of much of
§ 390.146 to §338.4, the FDIC believes
that rescinding it is unlikely to have
substantial effects on covered
institutions or applicants.
With the adoption of this final rule
the FDIC rescinds § 390.147. As
discussed in the NPR, the FDIC believes
that § 390.147 is duplicative now that
reporting reason for denial is required
rather than optional under Regulation C.
Further, since Regulation C provides a
partial exemption from reporting reason
for denial and certain other data points
for financial institutions that meet
specified conditions, but no such
exemption exists for State savings
associations, the final rule establishes
parity with respect to the reporting
requirements for HMDA LARs for State
savings associations and other FDIC-
supervised institutions. The FDIC
believes that this aspect of the final rule
is unlikely to significantly affect FDIC-
supervised institutions or applicants.
The final rule rescinds § 390.148. As
discussed in the NPR, the FDIC believes
that there is significant overlap between
the requirements of § 390.148(a) through
(d) and various aspects of the EEOA.
Further, § 390.148(e) and (f) references
multiple employment laws, including
the EEOA, which with the rescission of
the rest of § 390.148, would be
unnecessary. Therefore, the FDIC
believes that this aspect of the final rule
is unlikely to substantively affect FDIC-
supervised institutions or applicants.
The final rescinds § 390.149. As
discussed in the NPR, the FDIC has
procedures for referring complaints to
HUD regarding lending discrimination
by financial institutions and these
procedures apply to complaints
involving lending by State savings
associations. However, there appears to
be no equivalent requirement to the
provisions in § 390.149 regarding
referring complaints to the Equal
Employment Opportunity Commission
(EEOC) regarding employment
discrimination by FDIC-supervised
institutions. This aspect of the final rule
will thus create parity between insured
State nonmember banks and State
savings associations with respect to
complaints about discriminatory
lending. Given that FDIC-supervised
institutions are still subject to
applicable elements of the EEOA and
FDIC regulations and procedures, the
FDIC does not believe that this aspect of
the final rule is likely to have a
substantive effect on covered
institutions or their employees.
The final rule rescinds § 390.150. As
discussed in the NPR, this section
contains guidelines intended to serve as
a resource for State savings associations
when developing and implementing
nondiscriminatory lending policies.
State savings associations, like other
FDIC-supervised banks, remain subject
to Federal fair lending laws and
regulations and the FDIC does not
believe removal of these guidelines will
have any meaningful effect on these
institutions or their applicants.
Finally, the final rule makes some
technical changes to FDIC’s part 338 in
order to make it applicable to State
savings associations and provide for
Equal Housing Lender posters to state
the accurate CRC mailing address. As
previously discussed, these changes are
unlikely to have significant effects on
State savings associations because those
savings associations are already subject
to substantively similar regulations.
Rescinding part 390, subpart G, also will
serve to streamline the FDIC’s rules and
eliminate unnecessary, inconsistent,
and duplicative regulations. The final
rule will ensure that insured State
nonmember banks and State savings
associations will be subject to the same
antidiscrimination requirements.
VI. Alternatives
Several alternatives to the final rule
were available to the FDIC. The FDIC
could have retained the current
regulations in part 390, subpart G, but
chose not to do so since most of the
requirements in subpart G are
duplicative of or substantively similar to
existing requirements under Federal law
or under the FDIC’s current fair housing
requirements in part 338. As discussed
in the NPR, the FDIC also could have
retained certain requirements in subpart
G that the OTS issued pursuant to the
Home Owners’ Loan Act, but chose not
to do.
In the instances where the regulations
in part 390, subpart G, were more
stringent than similar requirements for
insured State nonmember banks, the
FDIC could have applied those
requirements to insured State
nonmember banks. However, the FDIC
chose not to adopt this alternative
because it believes the fair lending laws
and regulations that already apply to
insured State nonmember banks provide
an appropriate and sufficient framework
to prohibit discrimination.
The FDIC believes that this final rule,
which removes and rescinds part 390,
subpart G, and makes the FDIC’s
existing nondiscrimination regulations
applicable to State savings associations,
is less burdensome to State savings
associations and the public than the
alternatives discussed above since it
would promote consistency among the
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44 U.S.C. 3501–3521.
19
5 U.S.C. 601 et seq.
20
The SBA defines a small banking organization
as having $600 million or less in assets, where an
organization’s ‘‘assets are determined by averaging
the assets reported on its four quarterly financial
statements for the preceding year.’’ See 13 CFR
121.201 (as amended by 84 FR 34261, effective
August 19, 2019). In its determination, the ‘‘SBA
counts the receipts, employees, or other measure of
size of the concern whose size is at issue and all
of its domestic and foreign affiliates.’’ See 13 CFR
121.103. Following these regulations, the FDIC uses
a covered entity’s affiliated and acquired assets,
averaged over the preceding four quarters, to
determine whether the covered entity is ‘‘small’’ for
the purposes of RFA.
21
FDIC-supervised institutions are set forth in 12
U.S.C. 1813(q)(2).
22
FDIC Call Report data, June 30, 2020.
23
Id.
regulatory requirements for all FDIC-
supervised institutions and improve the
public’s understanding and ease of
reference. Additionally, the FDIC
believes that the final rule does not
materially change the
nondiscrimination requirements to
which insured State nonmember banks
and State savings associations are
required to adhere, relative to the
alternatives discussed.
VII. Administrative Law Matters
A. The Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(PRA),
18
the FDIC may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. The rescission
and removal from FDIC regulations of
part 390, subpart G, does not create new
or modify existing information
collection requirements. Accordingly,
no submission to OMB will be made
with respect to the final rule.
B. The Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
generally requires that, in connection
with a rulemaking, an agency prepare
and make available for public comment
a final regulatory flexibility analysis
describing the impact of the final rule
on small entities.
19
However, a
regulatory flexibility analysis is not
required if the agency certifies that the
final rule will not have a significant
economic impact on a substantial
number of small entities. The Small
Business Administration (SBA) has
defined ‘‘small entities’’ to include
banking organizations with total assets
of less than or equal to $600 million that
are independently owned and operated
or owned by a holding company with
less than or equal to $600 million in
total assets.
20
Generally, the FDIC
considers a significant effect to be a
quantified effect in excess of 5 percent
of total annual salaries and benefits per
institution, or 2.5 percent of total
noninterest expenses. The FDIC believes
that effects in excess of these thresholds
typically represent significant effects for
FDIC-supervised institutions. For the
reasons described below and under
section 605(b) of the RFA, the FDIC
certifies that this rule will not have a
significant economic impact on a
substantial number of small entities.
As of June 30, 2020, the FDIC
supervised 3,270 depository
institutions,
21
of which 2,492 were
considered small entities for the
purposes of RFA.
22
There are 33 State
savings associations that are small
entities for the purposes of RFA.
23
This
final rule rescinds §§ 390.140 and
390.141. As discussed previously, these
sections include definitions and cross-
references to other parts of section 390,
so their rescission has no independent
significance for institutions or
borrowers, but rather is a technical
amendment associated with the
proposal to rescind subpart G of part
390 in its entirety.
As previously discussed, this final
rule rescinds § 390.142. This section has
substantial overlap with the
requirements of ECOA and Regulation B
and the FHA and HUD’s FHA
regulations. Therefore, the FDIC
believes that these aspects of the final
rule are unlikely to significantly affect
small FDIC-supervised institutions or
borrowers.
The final rule rescinds § 390.143. As
discussed previously, aspects of
§ 390.143 are duplicative of prohibitions
under the general fair lending laws.
With regard to § 390.143(b), the final
rule reduces compliance requirements
associated with maintaining and
distributing relevant paperwork. The
FDIC believes that this is likely to pose
a relatively small benefit to the 33 small
institutions to which it applies. Further,
the FDIC believes that it is unlikely that
the rescission of the requirement to
establish, maintain, and distribute upon
request nondiscriminatory loan
underwriting standards for these 33
small State savings associations will
lead to an increase in discriminatory
lending behavior because these
institutions are still subject to the
general fair lending laws. Therefore, the
FDIC does not believe that this aspect of
the final rule is likely to have
substantive effects on small FDIC-
supervised institutions or borrowers.
As discussed previously, the final rule
rescinds § 390.144. Section 390.144(a) is
substantially similar to, and duplicative
of, prohibitions under the general
Federal fair lending laws.
24
The FDIC
also believes that the requirement to
post an Equal Housing Lender poster,
discussed above in connection with 12
CFR 338.4, serves a substantially similar
purpose as the requirement to ‘‘inform
each inquirer of his or her right to file
a written loan application’’ in 12 CFR
390.144(b). Therefore, the FDIC believes
that the rescission of § 390.144 is
unlikely to have any substantive effect
on small FDIC-supervised institutions or
borrowers.
As discussed previously, the final rule
rescinds § 390.145. Section 390.145 is
substantially similar to § 338.4 and the
final rule amends § 338.4 to cover State
savings associations in addition to
insured State nonmember banks.
Therefore, the FDIC believes that this
aspect of the final rule is unlikely to
have any substantive effect on small
FDIC-supervised institutions or
borrowers.
As discussed previously, the final rule
rescinds § 390.146. The requirements of
§ 390.146 are substantially similar to the
requirements applicable to insured State
nonmember banks under § 338.4.
However, § 338.4, unlike §390.146, does
not include a ‘‘recommendation’’ that a
Spanish-language version of the Equal
Housing Lender poster be posted in
offices serving areas with a substantial
Spanish-speaking population. The FDIC
does make a Spanish-language poster
available to the institutions it
supervises. Given the substantive
similarity of much of §§ 390.146 to
338.4, the FDIC believes that rescinding
it is unlikely to have substantial effects
on small covered institutions or
borrowers.
The final rule rescinds § 390.147. As
previously discussed, the FDIC believes
that § 390.147 is duplicative now that
reporting reason for denial is required
rather than optional under Regulation C.
Further, since Regulation C provides a
partial exemption from reporting reason
for denial and certain other data points
for financial institutions that meet
specified conditions, but no such
exemption exists for State savings
associations, the final rule establishes
parity with respect to the reporting
requirements for HMDA LARs for State
savings associations and other FDIC-
supervised institutions. The FDIC
believes that this aspect of the final rule
is unlikely to substantively affect small
FDIC-supervised institutions or
borrowers.
As previously discussed, the final rule
rescinds § 390.148. The FDIC believes
that there is significant overlap between
the requirements of § 390.148(a)–(d) and
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12 U.S.C. 4809.
26
Public Law 104–208, 110 Stat. 3009 (1996).
27
82 FR 15900 (March 30, 2017).
28
12 U.S.C. 4802(a).
29
12 U.S.C. 4802(b).
30
5 U.S.C. 801 et seq.
31
5 U.S.C. 801(a)(3).
various aspect of the EEOA. Further,
§ 390.148(e) & (f) references multiple
employment laws, including the EEOA,
which if the rest of § 390.148 were
rescinded as proposed, would be
unnecessary. Therefore, the FDIC
believes that this aspect of the final rule
is unlikely to substantively affect small
FDIC-supervised institutions or
borrowers.
As previously discussed, the final rule
rescinds § 390.149. The FDIC has
procedures for referring complaints to
HUD regarding lending discrimination
by financial institutions and these
procedures apply to complaints
involving lending by State savings
associations. However, there appears to
be no equivalent requirement to the
provisions in § 390.149 regarding
referring complaints to the EEOC
regarding employment discrimination
by FDIC-supervised institutions. This
aspect of the final rule thus creates
parity between State nonmember banks
and State savings associations with
respect to discriminatory complaints.
Given that FDIC-supervised institutions
are still subject to applicable elements
of the EEOA and FDIC regulations and
procedures, the FDIC does not believe
that this aspect of the final rule is likely
to have a substantive effect on covered
institutions or their employees.
As previously discussed, the final rule
rescinds § 390.150. This section
contains guidelines intended to serve as
a resource for State savings associations
when developing and implementing
nondiscriminatory lending policies.
Small State savings associations, like
other FDIC-supervised banks, remain
subject to Federal fair lending laws and
regulations and the FDIC does not
believe removal of these guidelines will
have any meaningful effect on these
institutions or their borrowers.
Finally, the final rule makes some
technical changes to FDIC’s part 338 in
order to make it applicable to State
savings associations and provide for
Equal Housing Lender posters to state
the accurate CRC mailing address. As
previously discussed, these changes are
unlikely to pose significant effects for
small State savings associations because
they are already subject to substantively
similar regulations.
Rescinding part 390, subpart G, also
will serve to streamline the FDIC’s rules
and eliminate unnecessary,
inconsistent, and duplicative
regulations. The final rule generally
provides for all small insured State
nonmember banks and State savings
associations to be subject to the same
nondiscrimination requirements.
The FDIC does not have data with
which to estimate the costs that State
savings associations currently incur to
comply with subpart G or how those
costs will change pursuant to this final
rule. However, since this final rule
affects only 33 small entities, and since
the differences between subpart G and
existing regulation and law are modest,
the FDIC certifies that this final rule will
not have a significant economic effect
on a substantial number of small
entities.
C. Plain Language
Section 722 of the Gramm-Leach-
Bliley Act
25
requires each Federal
banking agency to use plain language in
all of its proposed and final rules
published after January 1, 2000. The
FDIC has sought to present the final rule
in a simple and straightforward manner
and did not receive any comments on
the use of plain language.
D. The Economic Growth and
Regulatory Paperwork Reduction Act
Under section 2222 of the Economic
Growth and Regulatory Paperwork
Reduction Act of 1996 (EGRPRA), the
FDIC is required to review all of its
regulations, at least once every 10 years,
in order to identify any outdated or
otherwise unnecessary regulations
imposed on insured institutions.
26
The
FDIC, along with the other Federal
banking agencies, submitted a Joint
Report to Congress on March 21, 2017
(EGRPRA Report) discussing how the
review was conducted, what has been
done to date to address regulatory
burdens, and further measures the FDIC
will take to address issues that were
identified.
27
As noted in the EGRPRA
Report, the FDIC is continuing to
streamline and clarify its regulations
through the OTS rule integration
process. By removing outdated or
unnecessary regulations, such as part
390, subpart G, this final rule
complements other actions that the
FDIC has taken, separately and with the
other Federal banking agencies, to
further the EGRPRA mandate.
E. Riegle Community Development and
Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the
Riegle Community Development and
Regulatory Improvement Act
(RCDRIA),
28
in determining the effective
date and administrative compliance
requirements for new regulations that
impose additional reporting, disclosure,
or other requirements on insured
depository institutions (IDIs), each
Federal banking agency must consider,
consistent with principles of safety and
soundness and the public interest, any
administrative burdens that such
regulations would place on depository
institutions, including small depository
institutions, and customers of
depository institutions, as well as the
benefits of such regulations. In addition,
section 302(b) of RCDRIA requires new
regulations and amendments to
regulations that impose additional
reporting, disclosures, or other new
requirements on IDIs generally to take
effect on the first day of a calendar
quarter that begins on or after the date
on which the regulations are published
in final form.
29
As previously stated, the final rule
removes part 390, subpart G, from the
Code of Federal Regulations because,
after careful review and consideration,
the FDIC believes it is largely
unnecessary, redundant, or duplicative
of existing statutes and regulations. In
addition, the final also includes
amendments to the FDIC’s part 338 to
make it applicable to State savings
associations, introduce new definitions,
and to make technical conforming edits.
These amendments do not impose any
additional reporting, disclosure, or other
requirements on IDIs. Because the final
rule does not impose additional
reporting, disclosure, or other new
requirements on IDIs, section 302 of the
RCDRIA does not apply.
F. Congressional Review Act
For purposes of the Congressional
Review Act, the Office of Management
and Budget (OMB) makes a
determination as to whether a final rule
constitutes a ‘‘major’’ rule. If a rule is
deemed a ‘‘major rule’’
30
by the OMB,
the Congressional Review Act generally
provides that the rule may not take
effect until at least 60 days following its
publication.
31
The Congressional Review Act (CRA)
defines a ‘‘major rule’’ as any rule that
the Administrator of the Office of
Information and Regulatory Affairs of
the OMB finds has resulted in or is
likely to result in (A) an annual effect
on the economy of $100,000,000 or
more; (B) a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies or geographic
regions, or (C) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
enterprises to compete with foreign
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5 U.S.C. 804(2).
based enterprises in domestic and
export markets.
32
The OMB has determined that this
final rule is not a ‘‘major rule’’ for
purposes of the CRA. As required by the
Congressional Review Act, the FDIC
will submit the final rule and other
appropriate reports to Congress and the
Government Accountability Office for
review.
List of Subjects
12 CFR Part 338
Aged, Banks, banking, Civil rights,
Credit, Fair housing, Individuals with
disabilities, Marital status
discrimination, Mortgages, Religious
discrimination, Reporting and
recordkeeping requirements, Savings
associations, Sex discrimination, Signs
and symbols.
12 CFR Part 390
Administrative practice and
procedure, Advertising, Aged, Civil
rights, Conflict of interests, Credit,
Crime, Equal employment opportunity,
Fair housing, Government employees,
Individuals with disabilities, Reporting
and recordkeeping requirements,
Savings associations.
Authority and Issuance
For the reasons stated in the
preamble, the FDIC amends 12 CFR
parts 338 and 390 as follows:
■1. Revise part 338 to read as follows:
PART 338—FAIR HOUSING
Subpart A—Advertising
Sec.
338.1 Purpose.
338.2 Definitions applicable to this subpart.
338.3 Nondiscriminatory advertising.
338.4 Fair housing poster.
Subpart B—Recordkeeping
338.5 Purpose.
338.6 Definitions applicable to this subpart.
338.7 Recordkeeping requirements.
338.8 Compilation of loan data in register
format.
338.9 Mortgage lending of a controlled
entity.
Authority: 12 U.S.C. 1817, 1818, 1819,
1820(b), 2801 et seq.; 15 U.S.C. 1691 et seq.;
42 U.S.C. 3605, 3608; 12 CFR parts 1002,
1003; 24 CFR part 110.
Subpart A—Advertising
§ 338.1 Purpose.
The purpose of this subpart is to
prohibit FDIC-supervised institutions
from engaging in discriminatory
advertising with regard to residential
real estate-related transactions. This
subpart also requires FDIC-supervised
institutions to publicly display either
the Equal Housing Lender poster set
forth in § 338.4(b) or the Equal Housing
Opportunity poster prescribed by 24
CFR part 110 of the United States
Department of Housing and Urban
Development’s regulations. This subpart
enforces section 805 of title VIII of the
Civil Rights Act of 1968, 42 U.S.C.
3601–3619 (Fair Housing Act), as
amended by the Fair Housing
Amendments Act of 1988.
§ 338.2 Definitions applicable to this
subpart.
For purposes of this subpart:
(a) Bank means an insured state
nonmember bank as defined in section
3 of the Federal Deposit Insurance Act.
(b) Dwelling means any building,
structure, or portion thereof which is
occupied as, or designed or intended for
occupancy as, a residence by one or
more families, and any vacant land
which is offered for sale or lease for the
construction or location thereon of any
such building, structure, or portion
thereof.
(c) FDIC-supervised institution means
either a bank or a State savings
association.
(d) Handicap means, with respect to
a person:
(1) A physical or mental impairment
which substantially limits one or more
of such person’s major life activities;
(2) A record of having such an
impairment; or
(3) Being regarded as having such an
impairment, but such term does not
include current, illegal use of or
addiction to a controlled substance (as
defined in section 102 of the Controlled
Substances Act (21 U.S.C. 802)).
(e) Familial status means one or more
individuals (who have not attained the
age of 18 years) being domiciled with:
(1) A parent or another person having
legal custody of such individual or
individuals; or
(2) The designee of such parent or
other person having such custody, with
the written permission of such parent or
other person; and
(3) The protections afforded against
discrimination on the basis of familial
status shall apply to any person who is
pregnant or is in the process of securing
legal custody of any individual who has
not attained the age of 18 years.
(f) State savings association has the
same meaning as in section (3)(b)(3) of
the Federal Deposit Insurance Act, 12
U.S.C. 1813(b)(3).
§ 338.3 Nondiscriminatory advertising.
(a) Any FDIC-supervised institution
which directly or through third parties
engages in any form of advertising of
any loan for the purpose of purchasing,
constructing, improving, repairing, or
maintaining a dwelling or any loan
secured by a dwelling shall prominently
indicate in such advertisement, in a
manner appropriate to the advertising
medium and format utilized, that the
FDIC-supervised institutions makes
such loans without regard to race, color,
religion, national origin, sex, handicap,
or familial status.
(1) With respect to written and visual
advertisements, this paragraph (a) may
be satisfied by including in the
advertisement a copy of the logotype
with the Equal Housing Lender legend
contained in the Equal Housing Lender
poster prescribed in § 338.4(b) or a copy
of the logotype with the Equal Housing
Opportunity legend contained in the
Equal Housing Opportunity poster
prescribed in 24 CFR 110.25(a) of the
United States Department of Housing
and Urban Development’s regulations.
(2) With respect to oral
advertisements, this paragraph (a) may
be satisfied by a statement, in the
spoken text of the advertisement, that
the FDIC-supervised institution is an
‘‘Equal Housing Lender’’ or an ‘‘Equal
Opportunity Lender.’’
(3) When an oral advertisement is
used in conjunction with a written or
visual advertisement, the use of either of
the methods specified in paragraphs
(a)(1) and (2) of this section will satisfy
the requirements of this paragraph (a).
(b) No advertisement shall contain
any words, symbols, models, or other
forms of communication which express,
imply, or suggest a discriminatory
preference or policy of exclusion in
violation of the provisions of the Fair
Housing Act or the Equal Credit
Opportunity Act.
§ 338.4 Fair housing poster.
(a) Each FDIC-supervised institution
engaged in extending loans for the
purpose of purchasing, constructing,
improving, repairing, or maintaining a
dwelling or any loan secured by a
dwelling shall conspicuously display
either the Equal Housing Lender poster
set forth in paragraph (b) of this section
or the Equal Housing Opportunity
poster prescribed by 24 CFR 110.25(a) of
the United States Department of
Housing and Urban Development’s
regulations, in a central location within
the FDIC-supervised institution where
deposits are received or where such
loans are made, in a manner clearly
visible to the general public entering the
area, where the poster is displayed.
(b) The Equal Housing Lender Poster
shall be at least 11 by 14 inches in size
and have the following text:
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We Do Business in Accordance with
Federal Fair Lending Laws.
UNDER THE FEDERAL FAIR
HOUSING ACT, IT IS ILLEGAL, ON
THE BASIS OF RACE, COLOR,
NATIONAL ORIGIN, RELIGION, SEX,
HANDICAP, OR FAMILIAL STATUS
(HAVING CHILDREN UNDER THE AGE
OF 18) TO:
•Deny a loan for the purpose of
purchasing, constructing, improving,
repairing or maintaining a dwelling or
to deny any loan secured by a dwelling;
or
•Discriminate in fixing the amount,
interest rate, duration, application
procedures, or other terms or conditions
of such a loan or in appraising property.
IF YOU BELIEVE YOU HAVE BEEN
DISCRIMINATED AGAINST, YOU
SHOULD SEND A COMPLAINT TO:
Assistant Secretary for Fair Housing
and Equal Opportunity, Department of
Housing and Urban Development,
Washington, DC 20410.
For processing under the Federal Fair
Housing Act
AND TO:
Federal Deposit Insurance
Corporation, Consumer Response
Center, [Insert address for the Consumer
Response Center stated on the FDIC’s
website at www.fdic.gov]
For processing under the FDIC
Regulations.
UNDER THE EQUAL CREDIT
OPPORTUNITY ACT, IT IS ILLEGAL
TO DISCRIMINATE IN ANY CREDIT
TRANSACTION:
•On the basis of race, color, national
origin, religion, sex, marital status, or
age;
•Because income is from public
assistance; or
•Because a right has been exercised
under the Consumer Credit Protection
Act.
IF YOU BELIEVE YOU HAVE BEEN
DISCRIMINATED AGAINST, YOU
SHOULD SEND A COMPLAINT TO:
Federal Deposit Insurance
Corporation, Consumer Response
Center, [Insert address for the Consumer
Response Center stated on the FDIC’s
website at www.fdic.gov]
(c) The Equal Housing Lender Poster
specified in this section was adopted
under 24 CFR 110.25(b) of the United
States Department of Housing and
Urban Development’s rules and
regulations as an authorized
substitution for the poster required in
§ 110.25(a) of those rules and
regulations.
Subpart B—Recordkeeping
§ 338.5 Purpose.
The purpose of this subpart is two-
fold. First, this subpart notifies all FDIC-
supervised institutions of their duty to
collect and retain certain information
about a home loan applicant’s personal
characteristics in accordance with 12
CFR part 1002 (Regulation B of the
Bureau of Consumer Financial
Protection) in order to monitor an
institution’s compliance with the Equal
Credit Opportunity Act of 1974 (15
U.S.C. 1691 et seq.). Second, this
subpart notifies certain FDIC-supervised
institutions of their duty to maintain,
update, and report a register of home
loan applications in accordance with 12
CFR part 1003 (Regulation C of the
Bureau of Consumer Financial
Protection), which implements the
Home Mortgage Disclosure Act (12
U.S.C. 2801 et seq.).
§ 338.6 Definitions applicable to this
subpart.
For purposes of this subpart—
(a) Bank means an insured State
nonmember bank as defined in section
3 of the Federal Deposit Insurance Act,
12 U.S.C. 1813.
(b) Controlled entity means a
corporation, partnership, association, or
other business entity with respect to
which a bank possesses, directly or
indirectly, the power to direct or cause
the direction of management and
policies, whether through the
ownership of voting securities, by
contract, or otherwise.
(c) FDIC-supervised institution means
either a bank or a State savings
association.
(d) State savings association has the
same meaning as in section 3(b)(3) of
the Federal Deposit Insurance Act, 12
U.S.C. 1813(b)(3).
§ 338.7 Recordkeeping requirements.
All FDIC-supervised institutions that
receive an application for credit
primarily for the purchase or
refinancing of a dwelling occupied or to
be occupied by the applicant as a
principal residence where the extension
of credit will be secured by the dwelling
shall request and retain the monitoring
information required by Regulation B of
the Bureau of Consumer Financial
Protection (12 CFR part 1002).
§ 338.8 Compilation of loan data in register
format.
FDIC-supervised institutions and
other lenders required to file a Home
Mortgage Disclosure Act loan/
application register (LAR) with the
Federal Deposit Insurance Corporation
shall collect, record and report such
LAR in accordance with Regulation C of
the Bureau of Consumer Financial
Protection (12 CFR part 1003).
§ 338.9 Mortgage lending of a controlled
entity.
Any bank which refers any applicants
to a controlled entity and which
purchases any covered loan as defined
in Regulation C of the Bureau of
Consumer Financial Protection (12 CFR
part 1003) originated by the controlled
entity, as a condition to transacting any
business with the controlled entity,
shall require the controlled entity to
enter into a written agreement with the
bank. The written agreement shall
provide that the entity shall:
(a) Comply with the requirements of
§§ 338.3, 338.4, and 338.7, and, if
otherwise subject to Regulation C of the
Bureau of Consumer Financial
Protection (12 CFR part 1003), § 338.8;
(b) Open its books and records to
examination by the Federal Deposit
Insurance Corporation; and
(c) Comply with all instructions and
orders issued by the Federal Deposit
Insurance Corporation with respect to
its home loan practices.
PART 390—REGULATIONS
TRANSFERRED FROM THE OFFICE OF
THRIFT SUPERVISION
■2. The authority citation for part 390
is revised to read as follows:
Authority: 12 U.S.C. 1819.
Subpart Q also issued under 12 U.S.C.
1462; 1462a; 1463; 1464.
Subpart W also issued under 12 U.S.C.
1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m;
78n; 78p; 78w.
Subpart G—[Removed and Reserved]
■3. Remove and reserve subpart G,
consisting of §§ 390.140 through
390.150.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on December 15,
2020.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020–28452 Filed 2–2–21; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 303 and 390
RIN 3064–AF36
Removal of Transferred OTS
Regulations Regarding Application
Processing Procedures of State
Savings Associations and Conforming
Amendments to Other Regulations
AGENCY
: Federal Deposit Insurance
Corporation (FDIC).
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