The Office of the Comptroller of the Currency has removed references to disparate impact liability in its documentation and directed examiners to no longer look for it in their bank exams, the agency announced today.
President Trump in April signed an executive order directing federal agencies to eliminate the use of disparate impact liability in all contexts. As part of that order, the OCC has removed disparate impact liability from the “fair lending” booklet of the Comptroller’s Handbook, which is used by examiners, according to an OCC bulletin. The agency has also started removing references to disparate impact in other documentation and will not include it in examinations.
At the same time, the OCC said that it will continue to conduct fair lending risk assessments by analyzing Home Mortgage Disclosure Act data for possible evidence of disparate treatment, conducting risk-based fair lending examinations, and taking appropriate action if evidence of disparate treatment is found.
“The OCC expects banks to provide fair access to financial services, treat customers fairly, and comply with all applicable laws and regulations,” according to the bulletin.
