WASHINGTON — As an agency priority, NCUA keeps an out for discriminatory practices through various methods, NCUA Director of Examination & Insurance Dave Marquis told a congressional subcommittee last week.
"NCUA places a priority on ensuring that credit unions comply with all nondiscrimination laws and work to protect consumers against discriminatory or unfair home mortgage lending practices," Marquis said during a hearing in the House Financial Services Subcommittee on Oversight and Investigations. The agency accomplishes this through the exam process, by reviewing member complaints, and analyzing Home Mortgage Disclosure Act data.
The most recent HMDA data showed that during 2006, nearly 5,600 federally insured credit unions provided mortgage loans, comprising approximately 2% of the mortgage market. After noticing a trend of late filings, Marquis said that NCUA has issued fines in the last couple of years to prompt timelier filings, including 17 penalties in 2005 and 22 in 2006. In addition to regular examinations, NCUA also has 25 examiners devoted to fair lending compliance.
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Additionally, consumer complaints can be filed through NCUA's toll-free phone number and Web site as well as mail. Following a complaint, NCUA encourages the credit union to investigate it and inform NCUA of the results then resolve the matter according to the law.
NCUA has also implemented more sophisticated training to provide a better understanding of lending patterns in specific areas and how to detect discriminatory patterns.
Marquis added, "Credit union members are entitled to fair treatment, not because the law says so, but because they own the institution. When treatment is unfair and within the law, NCUA steps in to ensure no member is subject to discrimination."
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