Proposed removal of OTS nondiscrimination regs out for comment

A proposed rule to remove nondiscrimination rules issued by the former Office of Thrift Supervision (OTS) and make nonmember state savings associations subject to similar rules currently set for banks is out for comment until Oct. 26.

The Federal Deposit Insurance Corp. (FDIC) Board approved releasing the proposal Sept. 15. The proposal both rescinds the former OTS rules – which were transferred to the FDIC as part of the wind-down of the OTS under the 2010 Dodd-Frank Act – and adds provisions to the FDIC’s similar requirements in its “fair housing” rules for banks so they would also cover nonmember state savings associations.

The FDIC proposal notes that the relevant part of the FDIC rules currently prohibit insured state nonmember banks from engaging in discriminatory advertising with regard to residential real estate-related transactions; and requires recordkeeping of certain home loan application data for compliance with the Equal Credit Opportunity Act (ECOA) and Home Mortgage Disclosure Act (HMDA) with respect to insured state nonmember banks.

Reg lookup: Transferred OTS Regulations Regarding Nondiscrimination Requirements