Federal Regulators Continue Their Focus On Fair Lending And Appraisal Bias

As 2024 gets off the ground, federal regulators are continuing their focus on fair lending issues. In February, the Federal Financial Institutions Examination Council (FFIEC) released a statement on examination principles related to valuation discrimination and bias in residential lending. Around the same time, the FFIEC's Appraisal Subcommittee (ASC) held a hearing on appraisal bias that focused on ways to reduce instances of unfair property valuations. Taken together, it's clear federal regulators are continuing to focus on fair lending issues in 2024.

FFIEC Statement on Examination Principles Related to Valuation Discrimination and Bias in Residential Lending

The FFIEC's statement announces new examination principles tailored to consumer compliance examinations and safety and soundness examinations related to valuation principles in residential lending. In promulgating the statement and examination principles, the FFIEC seems concerned with the potential