May 14

Fair Lending Examinations: Increased Scrutiny, New Methodologies & False Positives

Registration Options & Pricing

Please select your membership status.

Recorded Webinar Includes

  • Recording of the Live Webinar
  • Available 6 business days following Live date
  • Handout and Take-Away Toolkit
  • Available on Desktop, Mobile & Tablet
  • Free Digital Download, yours to keep
  • Share link with anyone at your credit union
  • Presenter’s contact info for follow-up

9:00 am – 10:30 am HST
12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET

The law has long permitted the use of disparate impact analysis to prove discrimination, which means that your credit union can be found liable for discrimination even if there was no intent to discriminate. Credit unions have recently reported that regulators are using statistical analysis and unpublished analytical formulas during fair lending exams, with a new focus on unsecured and vehicle loans, in addition to home loans. The problem is that using these new methodologies and analytical formulas has resulted in “false positive” findings of discrimination.

The NCUA Fair Lending Guide provides:

Congress intended an ‘effects test’ concept to apply to a credit union’s determination of creditworthiness. The effects test refers to a credit practice that appears facially neutral, but has a disproportionately negative effect on a prohibited basis, even though the credit union has no intent to discriminate. This type of practice is discriminatory, in effect, unless the credit union can demonstrate the practice meets a legitimate business need that cannot be reasonably achieved by means less disparate in impact.

The new concern is that regulators can establish disparate impact (i.e., discrimination) based solely on statistics and unpublished analytical formulas. This webinar will help you prepare for your next fair lending exam and include suggestions on how to defend against disparate impact and discrimination claims.

Attendance certificate provided to self-report CE credits.


  • Overview of the fair lending laws and your institution’s obligations
  • Risks of noncompliance
  • Difference between discrimination and disparate impact
  • Restrictions on obtaining a spouse’s signature on loan documents and situations when a spouse’s signature is permitted
  • Defending against red-lining claims

    • Interagency Fair Lending Examination Procedures
    • Fair Lending Report of the Bureau of Consumer Financial Protection (December 2018)
    • NCUA Fair Lending Guide (July 2017)
    • Employee training log
    • NEW: Interactive Quiz to measure staff learning


This informative session is designed for all lending personnel, including loan officers, loan operations personnel, credit analysts, compliance officers, auditors, attorneys, and managers.


NOTE:  All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.


Spencer Fane LLP
You might be interested in:

We provide credit union webinars on compliance, lending, regulations, security, operations, new accounts, collections, fraud, security & other topics. For more information on credit union education and online training opportunities, join our mailing list.