The current regulatory structure and failings by some regulators has resulted in inconsistent enforcement of anti-discrimination laws among lenders, a report by Congress' investigative arm concluded.
The Government Accountability Office noted that since 2005, the NCUA had referred no lenders to the Department of Justice for further investigation for potential violations, while during the same period the Federal Reserve, the FDIOC and Office of Thrift Supervision have referred more than 100 lenders.
The office said the findings "raise important questions about the consistency of "fair lending oversight,'' and there needs to be additional analysis of the data.
NCUA Chairman Michael E. Fryzel said in a written response that the data analysis should be done "prior to reaching the conclusion about the consistency and effectiveness of NCUA's regulatory oversight.'' He noted that NCUA made no referrals because they should "only be done where there is a clear pattern or practice of discriminatory actions'' and the agency didn't identify any actions during the time period. He added that credit unions may have a better record in this area because they have a better understanding of their members' financial needs and are designed to meet the credit and savings needs of persons of modest means.
The GAO called for requiring lenders to submit more data to document their lending patterns and urged Congress to find ways to "ensure more consistent and effective federal oversight of the fair lending laws.''
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