8082 Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations 

1 Dodd-Frank Wall Street Reform and Consumer 

Protection Act, Public Law 111–203, 124 Stat. 1376 

(2010). 

2Codified at 12 U.S.C. 5411. 

3Codified at 12 U.S.C. 5414(b). 

4Codified at 12 U.S.C. 5414(c). 

5 76 FR 39247 (July 6, 2011). 

6Codified at 12 U.S.C. 5412(b)(2)(B)(i)(II). 

7 12 U.S.C. 1813(q). 

8 76 FR 47652 (Aug. 5, 2011). 

9 12 U.S.C. 5414(b)(3). 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 338 and 390 

RIN 3064–AF35 

Removal of Transferred Office of Thrift 

Supervision (OTS) Regulations 

Regarding Nondiscrimination 

Requirements 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Final rule. 

SUMMARY: The Federal Deposit 

Insurance Corporation (FDIC) is 

rescinding and removing its regulation 

titled ‘‘Nondiscrimination 

Requirements’’ and amending its 

regulation titled ‘‘Fair Housing’’ to make 

it applicable to State savings 

associations. These actions will 

streamline the FDIC’s rules by 

eliminating unnecessary, inconsistent, 

and duplicative regulations, and ensure 

insured State nonmember banks and 

State savings associations generally will 

be subject to the same 

nondiscrimination requirements. 

DATES: The final rule is effective on 

March 5, 2021. Compliance with 12 CFR 

338.4(b) regarding displaying the 

current address of the FDIC’s Consumer 

Response Center on an Equal Housing 

Lender poster is mandatory on February 

3, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Navid Choudhury, Counsel, Legal 

Division, (202) 898–6526, nchoudhury@

fdic.gov; Jamie Goodson, Senior Policy 

Analyst, (202) 898–6685, jagoodson@

fdic.gov; Ernestine Ward, Policy 

Analyst, (202) 898–3812, erward@

fdic.gov; and Evelyn Manley, Fair 

Lending Specialist, (202) 898–3775, 

emanley@fdic.gov, Division of Depositor 

and Consumer Protection. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Title III of the Dodd-Frank Act 1

provided for a substantial reorganization 

of the regulation of State and Federal 

savings associations and their holding 

companies. Beginning July 21, 2011, the 

transfer date established by section 311 

of the Dodd-Frank Act,2 the powers, 

duties, and functions formerly 

performed by the OTS were divided 

among the FDIC, as to State savings 

associations, the Office of the 

Comptroller of the Currency (OCC), as to 

Federal savings associations, and the 

Board of Governors of the Federal 

Reserve System (FRB), as to savings and 

loan holding companies. Section 316(b) 

of the Dodd-Frank Act 3 provides the 

manner of treatment for all orders, 

resolutions, determinations, regulations, 

and advisory materials that had been 

issued, made, prescribed, or allowed to 

become effective by the OTS. Section 

316(b) states that if the materials were 

in effect on the day before the transfer 

date, they continue to be in effect and 

are enforceable by or against the 

appropriate successor agency until they 

are modified, terminated, set aside, or 

superseded in accordance with 

applicable law by such successor 

agency, by any court of competent 

jurisdiction, or by operation of law. 

Section 316(c) of the Dodd-Frank 

Act 4 further directed the FDIC and the 

OCC to consult with one another and to 

publish a list of the continued OTS 

regulations which would be enforced by 

the FDIC and the OCC, respectively. On 

June 14, 2011, the FDIC’s Board of 

Directors approved a ‘‘List of OTS 

Regulations to be Enforced by the OCC 

and the FDIC Pursuant to the DoddFrank Wall Street Reform and Consumer 

Protection Act.’’ This list was published 

by the FDIC and the OCC as a Joint 

Notice in the Federal Register on July 

6, 2011.5

Although section 312(b)(2)(B)(i)(II) of 

the Dodd-Frank Act 6 granted the OCC 

rulemaking authority relating to both 

State and Federal savings associations, 

the Dodd-Frank Act did not generally 

affect the FDIC’s existing authority to 

issue regulations under the Federal 

Deposit Insurance Act (FDI Act) and 

other laws as the ‘‘appropriate Federal 

banking agency’’ or under similar 

statutory terminology. Section 312(c) of 

the Dodd-Frank Act amended the 

definition of ‘‘appropriate Federal 

banking agency’’ contained in section 

3(q) of the FDI Act 7 to add State savings 

associations to the list of entities for 

which the FDIC is designated as the 

‘‘appropriate Federal banking agency.’’ 

As a result, except in limited 

circumstances in which certain 

rulemaking authority is specifically 

given to another agency, when the FDIC 

acts as the designated ‘‘appropriate 

Federal banking agency’’ (or under 

similar terminology) for State savings 

associations, as it does here, the FDIC is 

generally authorized to issue, modify 

and rescind regulations involving such 

associations, insured State nonmember 

banks, and insured branches of foreign 

banks. 

As noted, on June 14, 2011, operating 

pursuant to this authority, the FDIC’s 

Board of Directors reissued and 

redesignated certain transferred OTS 

regulations. These transferred OTS 

regulations were published as new FDIC 

regulations in the Federal Register on 

August 5, 2011.8 When it republished 

the transferred OTS regulations as new 

FDIC regulations, the FDIC specifically 

noted that its staff would evaluate the 

transferred OTS regulations and might 

later recommend incorporating them 

into other FDIC regulations, amending 

them, or rescinding them, as 

appropriate. 

One of the OTS rules transferred to 

the FDIC requires State savings 

associations to not discriminate with 

respect to lending, employment, and 

other services provided. The OTS rule, 

formerly found at 12 CFR part 528 (part 

528), was transferred to the FDIC with 

only technical changes and is now 

found in the FDIC’s rules at part 390, 

subpart G, entitled ‘‘Nondiscrimination 

Requirements.’’ 

II. The Proposal 

A. Removal of Part 390, Subpart G, 

Nondiscrimination Requirements 

On September 25, 2020, the FDIC 

published a notice of proposed 

rulemaking (NPR or ‘‘proposal’’) 

regarding the removal of part 390, 

subpart G (85 FR 60389). Although few 

provisions of part 390, subpart G, have 

a direct counterpart within the FDIC’s 

regulations, the provisions are largely 

duplicative of regulations implementing 

Federal laws (Equal Credit Opportunity 

Act (ECOA), Fair Housing Act (FHA), 

Equal Employment Opportunity Act 

(EEOA), and other laws concerning 

nondiscrimination in lending, 

employment, and services) 

implemented by other agencies. 

Regarding the functions of the former 

OTS that were transferred to the FDIC, 

section 316(b)(3) of the Dodd-Frank 

Act 9 provides that the former OTS 

regulations will be enforceable by the 

FDIC until they are modified, 

terminated, set aside, or superseded in 

accordance with applicable law. After 

careful review of part 390, subpart G, 

the FDIC, as the appropriate Federal 

banking agency for State savings 

associations, proposed to rescind and 

remove part 390, subpart G, in its 

entirety, because, as discussed in the 

NPR, it is duplicative, unnecessary, and 

burdensome to require State savings 


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Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations 8083 

10 12 U.S.C. 1813(b)(3). 

11The poster is available to both insured State 

nonmember banks and State savings associations. 

Moreover, the current CRC mailing address is 

correctly stated in FDIC regulations applicable to 

State savings associations. 12 CFR 390.146. 12Currently, the mailing address for the 

Consumer Response Center (1100 Walnut St., Box 

#11 Kansas City, MO 64106) is provided at https:// 

www.fdic.gov/consumers/assistance/ 

filecomplaint.html. Since May 31, 2012, Regulation 

B has required the use of that address in adverse 

action notices, as applicable. See Board of 

Governors of the Federal Reserve System, Final 

Rule, Equal Credit Opportunity, 76 FR 31451 (Jun. 

1, 2011). 

associations to comply with additional 

requirements to which insured State 

nonmember banks are not subject. The 

FDIC received no comments on the 

proposal to rescind and remove part 

390, subpart G. 

For a statement of the rationale for 

rescission and removal of each section 

of subpart G, the reader is referred to the 

fulsome explanations provided in the 

NPR, which the FDIC references here as 

the basis for finalizing the regulations as 

proposed. In several instances, the 

proposal to remove a specific section of 

subpart G was coupled with a proposed 

amendment to part 338 of the FDIC’s 

regulations. These amendments are also 

discussed below. 

B. Amendments to Part 338 Fair 

Housing 

The FDIC’s part 338, Fair Housing, 

applies to insured State nonmember 

banks and addresses discrimination in 

advertising and recordkeeping 

requirements under ECOA and the 

Home Mortgage Disclosure Act (HMDA). 

The FDIC proposed to make technical 

conforming edits to part 338 to 

encompass State savings associations 

and update the regulation. In short, the 

FDIC proposed to: (1) Revise § 338.1 to 

reflect that the advertising provisions of 

subpart A apply to State savings 

associations and their subsidiaries, to 

conform to and reflect the scope of 

FDIC’s current supervisory 

responsibilities as the appropriate 

Federal banking agency for State savings 

associations; (2) in § 338.2, add a 

defined term ‘‘FDIC-supervised 

institution,’’ defined to mean ‘‘either a 

bank [defined in § 338.2(a) to mean ‘‘an 

insured State nonmember bank as 

defined in section 3 of the Federal 

Deposit Insurance Act’’] or a State 

savings association’’; (3) add a new 

subsection to define ‘‘State savings 

association’’ as having ‘‘the same 

meaning as in section 3(b)(3) of the 

Federal Deposit Insurance Act;’’ 10 (4) 

make conforming technical edits 

throughout, including replacing the 

term ‘‘FDIC-supervised institution’’ or 

‘‘institution’’ in place of ‘‘bank’’ 

throughout the rule where necessary 

and revising references to the FRB’s 12 

CFR parts 202 and 203 throughout part 

338 to refer to the Bureau of Consumer 

Financial Protection’s (CFPB) 12 CFR 

parts 1002 and 1003, respectively; and 

(5) amend § 338.4 to update the text 

required for the Equal Housing Lender 

poster to the correct address for the 

FDIC Consumer Response Center. The 

FDIC received no comments on the 

proposal to amend part 338. 

The Supplementary Information 

section of this final rule sets forth the 

rationales for the amendments to the 

FDIC’s regulations located in part 338 

because, as proposed, the final rule 

revises FDIC regulations that will 

remain in place, albeit in an amended 

form. 

1. Section 338.1—Purpose 

Section 338.1 states that its purposes 

are to prohibit insured State nonmember 

banks from engaging in discriminatory 

advertising with regard to residential 

real estate-related transactions and 

require them to publicly display either 

the Equal Housing Lender poster set 

forth in § 338.4(b) of the FDIC’s 

regulations or the Equal Housing 

Opportunity poster prescribed in 24 

CFR part 110 in HUD’s regulations. The 

FDIC proposed to amend § 338.1 to 

change references to ‘‘insured State 

nonmember banks’’ to refer to ‘‘FDICsupervised institutions’’ to reflect that 

§ 338.1 applies to all institutions for 

which the FDIC is the appropriate 

Federal banking agency. 

2. Section 338.2—Definitions 

Applicable to This Subpart 

Section 338.2 defines terms used in 

subpart A of part 338, including the 

term ‘‘bank’’ defined in § 338.2(a) to 

mean ‘‘an insured state nonmember 

bank as defined in section 3 of the 

Federal Deposit Insurance Act.’’ The 

FDIC proposed to add a new defined 

term ‘‘FDIC-supervised institution’’ 

meaning a bank or a State savings 

association to § 338.2(c) and to add to 

§ 338.2(f), a new defined term ‘‘State 

savings association’’ having ‘‘the same 

meaning as in section (3)(b)(3) of the 

Federal Deposit Insurance Act, 12 

U.S.C. 1813(b)(3).’’ The FDIC also 

proposed to make conforming technical 

edits to other subsections in § 338.2 to 

reflect the re-ordering of definitions. 

3. Section 338.3—Nondiscriminatory 

Advertising 

Section 338.3 provides certain 

requirements with respect to dwellingrelated advertisements to reflect the 

bank’s nondiscrimination lending 

practice and prohibits such 

advertisements from including ‘‘words, 

symbols, models, or other forms of 

communication which express, imply, 

or suggest a discriminatory preference 

or policy of exclusion in violation of the 

provisions of the FHA or ECOA. To 

reflect that § 338.3 applies to all 

institutions for which the FDIC is the 

appropriate Federal banking agency, the 

FDIC proposed to amend § 338.3 to 

change references to ‘‘bank’’ to refer to 

‘‘FDIC-supervised institution.’’ 

4. Section 338.4—Fair Housing Poster 

Section 338.4(a) requires insured 

State nonmember banks engaged in 

extending dwelling-related loans to 

conspicuously display either an Equal 

Housing Lender poster or an Equal 

Housing Opportunity poster ‘‘in a 

central location within the bank where 

deposits are received or where such 

loans are made in a manner clearly 

visible to the general public entering the 

area, where the poster is displayed.’’ 

This requirement is substantially similar 

to the requirement in § 390.146 for State 

savings associations to display an Equal 

Housing Lender poster, which the FDIC 

proposed to rescind and remove. To 

reflect that § 338.4(a) applies to all 

institutions for which the FDIC is the 

appropriate Federal banking agency, the 

FDIC proposed to amend § 338.4(a) to 

change references to ‘‘insured State 

nonmember banks’’ to refer to ‘‘FDICsupervised institutions.’’ 

Section 338.4(b) sets forth the 

required text of the FDIC’s Equal 

Housing Lender poster, including the 

former mailing address of the FDIC’s 

Consumer Response Center (CRC), 

formatted as a Portable Document 

Format (PDF) image. When the CRC 

mailing address changed in 2011, the 

FDIC made available to FDIC-supervised 

institutions an Equal Housing Lender 

poster with the correct address of the 

CRC, both in English and in Spanish.11

However, because the CRC mailing 

address may change in the future, the 

FDIC proposed to amend § 338.4(b) to 

reflect that the mailing address stated on 

the Equal Housing Lender poster should 

be the address for the CRC stated on the 

FDIC’s website at www.fdic.gov.12

Furthermore, the FDIC proposed to set 

forth the required text of the Equal 

Housing Lender poster in § 338.4(b) as 

a text statement rather than as a PDF 

image. 

To assist FDIC-supervised 

institutions, the FDIC expects to 

continue to provide them with access to 

a poster stating the required text, 

including the accurate CRC mailing 


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8084 Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations 

13This requirement relates to the collection of 

information for monitoring purposes required by 12 

CFR 1002.13. 14Pursuant to § 338.6(b), ‘‘controlled entity’’ 

means ‘‘a corporation, partnership, association, or 

other business entity with respect to which a bank 

possesses, directly or indirectly, the power to direct 

or cause the direction of management and policies, 

whether through the ownership of voting securities, 

by contract, or otherwise.’’ 

15FDIC-supervised institutions are set forth in 12 

U.S.C. 1813(q)(2). 

16FDIC Call Report data, June 30, 2020. 

address. With the FDIC adopting the 

proposal as final, no change to posters 

would be required of FDIC-supervised 

institutions that use an Equal Housing 

Lender poster obtained from the FDIC, 

because the CRC mailing address was 

updated in 2011. The FDIC believes that 

few insured State nonmember banks 

make their own Equal Housing Lender 

poster based on the text of § 338.4(b). 

Nonetheless, to facilitate the transition 

to the updated poster, the FDIC is 

providing a one-year transition period 

for FDIC-supervised institutions to 

change their posters to reflect the 

current CRC mailing address, if needed. 

That is, the effective date of § 338.4(b), 

as amended, is one year after this final 

rule amending the provision is 

published in the Federal Register. 

5. Section 338.5—Purpose 

Section 338.5 states that its purpose is 

to notify insured State nonmember 

banks of their duty both to collect and 

retain certain information about a home 

loan applicant’s personal characteristics 

in accordance with Regulation B and to 

maintain, update and report a register of 

home loan applications in accordance 

with Regulation C. To reflect that 

§ 338.5 applies to all institutions for 

which the FDIC is the appropriate 

Federal banking agency, the FDIC 

proposed to amend § 338.5 to change 

references to ‘‘insured State nonmember 

banks’’ to refer to ‘‘FDIC-supervised 

institutions.’’ The FDIC also proposed to 

make technical amendments to § 338.5 

to reflect that Regulation B and 

Regulation C have been re-designated as 

12 CFR part 1002 and 12 CFR part 1003, 

respectively, and are implemented by 

the CFPB. 

6. Section 338.6—Definitions 

Applicable to This Subpart 

Section 338.6 defines terms used in 

subpart B of part 338, including the 

term ‘‘bank’’ defined in § 338.6(a) to 

mean ‘‘an insured State nonmember 

bank as defined in section 3 of the 

Federal Deposit Insurance Act.’’ The 

FDIC proposed to add to § 338.2(c) a 

new defined term ‘‘FDIC-supervised 

institution’’ meaning a bank or a State 

savings association and add to 

§ 338.6(d) a new defined term ‘‘State 

savings association’’ having ‘‘the same 

meaning as in section (3)(b)(3) of the 

Federal Deposit Insurance Act, 12 

U.S.C. 1813(b)(3).’’ 

7. Section 338.7—Recordkeeping 

Requirements 

Section 338.7 requires banks that 

receive an application for credit 

primarily for the purchase or 

refinancing of a dwelling occupied or to 

be occupied by the applicant as a 

principal residence where the extension 

of credit will be secured by the dwelling 

to request and retain the monitoring 

information required by Regulation B.13

To reflect that § 338.7 applies to all 

institutions for which the FDIC is the 

appropriate Federal banking agency, the 

FDIC proposed to amend § 338.7 to 

change references to ‘‘bank’’ to refer to 

‘‘FDIC-supervised institution.’’ The 

FDIC also proposed to make technical 

amendments to § 338.7 to reflect that 

Regulation B has been re-designated as 

12 CFR part 1002 and is implemented 

by the CFPB. 

8. Section 338.8— Compilation of Loan 

Data in Register Format 

Section 338.8 requires banks and 

other lenders required to file a HMDA 

loan/application register (LAR) with the 

FDIC to maintain, update and report 

such LAR in accordance with 

Regulation C. To reflect that § 338.8 

applies to all institutions for which the 

FDIC is the appropriate Federal banking 

agency, the FDIC proposed to amend 

§ 338.8 to change references to ‘‘bank’’ 

to refer to ‘‘FDIC-supervised 

institution.’’ Additionally, to reflect 

amendments made to Regulation C 

regarding the responsibilities of a 

financial institution with respect to 

HMDA LAR data, the FDIC proposed to 

amend § 338.8 to require banks and 

other lenders required to file a HMDA 

LAR with the FDIC to collect, record, 

and report such LAR in accordance with 

Regulation C. The FDIC also proposed to 

make technical amendments to § 338.8 

to reflect that Regulation C has been redesignated as 12 CFR part 1003 and is 

implemented by the CFPB. 

9. Section 338.9—Mortgage Lending of a 

Controlled Entity 

Section 338.9 establishes 

requirements that apply if a bank refers 

applicants to a ‘‘controlled entity,’’ as 

defined in § 338.6, and purchases any 

home purchase loans or home 

improvement loans (as defined in 

Regulation C) that are originated by the 

controlled entity, as a condition to 

transacting any business with the 

controlled entity.14 In such cases, 

§ 338.9 provides that the bank must 

require the controlled entity to enter 

into a written agreement with the bank 

that states that the controlled entity 

must comply with the requirements of 

§§ 338.3, 338.4 and 338.7 and, if the 

controlled entity is subject to Regulation 

C, § 338.8. Further, the written 

agreement must provide that the 

controlled entity must open its books 

and records to FDIC examination and 

comply with all FDIC instructions and 

orders with respect to its home loan 

practices. 

Because this final rule is intended to 

rescind and remove former OTS 

regulations that are duplicative of 

regulations under ECOA, FHA, or 

EEOA, the FDIC did not propose to 

impose substantive requirements 

regarding the business transactions 

between a State savings association and 

any entity it controls and therefore did 

not propose to replace the term ‘‘bank’’ 

with the term ‘‘FDIC-supervised 

institution’’ in § 338.9. However, the 

FDIC proposed to make technical 

amendments to § 338.9 to reflect that 

Regulation C has been re-designated as 

12 CFR part 1003 and is implemented 

by the CFPB. 

III. Comments 

The FDIC received no comments on 

the rescission and removal of part 390, 

subpart G, nor to the amendments to 

part 338. 

IV. The Final Rule 

For the reasons stated herein and in 

the NPR, the FDIC is adopting the 

proposal as proposed. 

V. Expected Effects 

As of June 30, 2020, the FDIC 

supervised 3,270 depository 

institutions,15 of which 35 are State 

savings associations.16

The final rule rescinds §§ 390.140 and 

390.141. As discussed previously, these 

sections include definitions and crossreferences to other parts of section 390, 

so their rescission has no independent 

significance for institutions or 

applicants, but rather is a technical 

amendment associated with the 

rescission of subpart G of part 390 in its 

entirety. 

The final rule rescinds § 390.142. As 

discussed in the NPR, this section has 

substantial overlap with the 

requirements of ECOA and Regulation B 

and the FHA and HUD’s FHA 

regulations. Therefore, the FDIC 

believes that these aspects of the final 

rule are unlikely to significantly affect 

FDIC-supervised institutions or 

applicants. 


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17See, e.g., 15 U.S.C. 1691(a); 42 U.S.C. 3605; 12 

CFR 1002.4; 24 CFR 100.120. 

The final rule rescinds § 390.143. As 

discussed in the NPR, aspects of 

§ 390.143 are either duplicative of 

prohibitions under the general fair 

lending laws. With regard to 

§ 390.143(b), the rule reduces 

compliance requirements associated 

with maintaining and distributing 

relevant paperwork. The FDIC believes 

that this is likely to pose a relatively 

small benefit to the 35 institutions to 

which it applies. Further, the FDIC 

believes that it is unlikely that the 

rescission of the requirement to 

establish, maintain, and distribute upon 

request nondiscriminatory loan 

underwriting standards for these 35 

State savings associations would lead to 

an increase in discriminatory lending 

behavior because these institutions are 

still subject to the general fair lending 

laws. Therefore, the FDIC does not 

believe that this aspect of the final rule, 

if adopted, is likely to have substantive 

effects on FDIC-supervised institutions 

or applicants. 

The final rule rescinds § 390.144. As 

discussed in the NPR, Section 

390.144(a) is substantially similar to, 

and duplicative of, prohibitions under 

the general Federal fair lending laws.17

The FDIC also believes that the 

requirement to post an Equal Housing 

Lender poster, discussed above in 

connection with § 338.4, serves a 

substantially similar purpose as the 

requirement to ‘‘inform each inquirer of 

his or her right to file a written loan 

application’’ in § 390.144(b). Therefore, 

the FDIC believes that the rescission of 

§ 390.144 is unlikely to have any 

substantive effect on FDIC-supervised 

institutions or applicants. 

The final rule rescinds § 390.145. As 

discussed in the NPR, Section 390.145 

is substantially similar to § 338.4 and 

the rule amends § 338.4 to cover State 

savings associations in addition to 

insured State nonmember banks. 

Therefore, the FDIC believes that this 

aspect of the final rule is unlikely to 

have any substantive effect on FDICsupervised institutions or applicants. 

The final rule rescinds § 390.146. As 

discussed in the NPR, the requirements 

of § 390.146 are substantially similar to 

the requirements applicable to insured 

State nonmember banks under § 338.4. 

Section 338.4, however, unlike 

§ 390.146, does not include a 

‘‘recommendation’’ that a Spanishlanguage version of the Equal Housing 

Lender poster be posted in offices 

serving areas with a substantial 

Spanish-speaking population. The FDIC 

does, however, make a Spanishlanguage poster available to the 

institutions it supervises. Given the 

substantive similarity of much of 

§ 390.146 to § 338.4, the FDIC believes 

that rescinding it is unlikely to have 

substantial effects on covered 

institutions or applicants. 

With the adoption of this final rule 

the FDIC rescinds § 390.147. As 

discussed in the NPR, the FDIC believes 

that § 390.147 is duplicative now that 

reporting reason for denial is required 

rather than optional under Regulation C. 

Further, since Regulation C provides a 

partial exemption from reporting reason 

for denial and certain other data points 

for financial institutions that meet 

specified conditions, but no such 

exemption exists for State savings 

associations, the final rule establishes 

parity with respect to the reporting 

requirements for HMDA LARs for State 

savings associations and other FDICsupervised institutions. The FDIC 

believes that this aspect of the final rule 

is unlikely to significantly affect FDICsupervised institutions or applicants. 

The final rule rescinds § 390.148. As 

discussed in the NPR, the FDIC believes 

that there is significant overlap between 

the requirements of § 390.148(a) through 

(d) and various aspects of the EEOA. 

Further, § 390.148(e) and (f) references 

multiple employment laws, including 

the EEOA, which with the rescission of 

the rest of § 390.148, would be 

unnecessary. Therefore, the FDIC 

believes that this aspect of the final rule 

is unlikely to substantively affect FDICsupervised institutions or applicants. 

The final rescinds § 390.149. As 

discussed in the NPR, the FDIC has 

procedures for referring complaints to 

HUD regarding lending discrimination 

by financial institutions and these 

procedures apply to complaints 

involving lending by State savings 

associations. However, there appears to 

be no equivalent requirement to the 

provisions in § 390.149 regarding 

referring complaints to the Equal 

Employment Opportunity Commission 

(EEOC) regarding employment 

discrimination by FDIC-supervised 

institutions. This aspect of the final rule 

will thus create parity between insured 

State nonmember banks and State 

savings associations with respect to 

complaints about discriminatory 

lending. Given that FDIC-supervised 

institutions are still subject to 

applicable elements of the EEOA and 

FDIC regulations and procedures, the 

FDIC does not believe that this aspect of 

the final rule is likely to have a 

substantive effect on covered 

institutions or their employees. 

The final rule rescinds § 390.150. As 

discussed in the NPR, this section 

contains guidelines intended to serve as 

a resource for State savings associations 

when developing and implementing 

nondiscriminatory lending policies. 

State savings associations, like other 

FDIC-supervised banks, remain subject 

to Federal fair lending laws and 

regulations and the FDIC does not 

believe removal of these guidelines will 

have any meaningful effect on these 

institutions or their applicants. 

Finally, the final rule makes some 

technical changes to FDIC’s part 338 in 

order to make it applicable to State 

savings associations and provide for 

Equal Housing Lender posters to state 

the accurate CRC mailing address. As 

previously discussed, these changes are 

unlikely to have significant effects on 

State savings associations because those 

savings associations are already subject 

to substantively similar regulations. 

Rescinding part 390, subpart G, also will 

serve to streamline the FDIC’s rules and 

eliminate unnecessary, inconsistent, 

and duplicative regulations. The final 

rule will ensure that insured State 

nonmember banks and State savings 

associations will be subject to the same 

antidiscrimination requirements. 

VI. Alternatives 

Several alternatives to the final rule 

were available to the FDIC. The FDIC 

could have retained the current 

regulations in part 390, subpart G, but 

chose not to do so since most of the 

requirements in subpart G are 

duplicative of or substantively similar to 

existing requirements under Federal law 

or under the FDIC’s current fair housing 

requirements in part 338. As discussed 

in the NPR, the FDIC also could have 

retained certain requirements in subpart 

G that the OTS issued pursuant to the 

Home Owners’ Loan Act, but chose not 

to do. 

In the instances where the regulations 

in part 390, subpart G, were more 

stringent than similar requirements for 

insured State nonmember banks, the 

FDIC could have applied those 

requirements to insured State 

nonmember banks. However, the FDIC 

chose not to adopt this alternative 

because it believes the fair lending laws 

and regulations that already apply to 

insured State nonmember banks provide 

an appropriate and sufficient framework 

to prohibit discrimination. 

The FDIC believes that this final rule, 

which removes and rescinds part 390, 

subpart G, and makes the FDIC’s 

existing nondiscrimination regulations 

applicable to State savings associations, 

is less burdensome to State savings 

associations and the public than the 

alternatives discussed above since it 

would promote consistency among the 


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8086 Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations 

18 44 U.S.C. 3501–3521. 

19 5 U.S.C. 601 et seq. 

20The SBA defines a small banking organization 

as having $600 million or less in assets, where an 

organization’s ‘‘assets are determined by averaging 

the assets reported on its four quarterly financial 

statements for the preceding year.’’ See 13 CFR 

121.201 (as amended by 84 FR 34261, effective 

August 19, 2019). In its determination, the ‘‘SBA 

counts the receipts, employees, or other measure of 

size of the concern whose size is at issue and all 

of its domestic and foreign affiliates.’’ See 13 CFR 

121.103. Following these regulations, the FDIC uses 

a covered entity’s affiliated and acquired assets, 

averaged over the preceding four quarters, to 

determine whether the covered entity is ‘‘small’’ for 

the purposes of RFA. 

21FDIC-supervised institutions are set forth in 12 

U.S.C. 1813(q)(2). 

22FDIC Call Report data, June 30, 2020. 

23 Id. 

regulatory requirements for all FDICsupervised institutions and improve the 

public’s understanding and ease of 

reference. Additionally, the FDIC 

believes that the final rule does not 

materially change the 

nondiscrimination requirements to 

which insured State nonmember banks 

and State savings associations are 

required to adhere, relative to the 

alternatives discussed. 

VII. Administrative Law Matters 

A. The Paperwork Reduction Act 

In accordance with the requirements 

of the Paperwork Reduction Act of 1995 

(PRA),18 the FDIC may not conduct or 

sponsor, and the respondent is not 

required to respond to, an information 

collection unless it displays a currently 

valid Office of Management and Budget 

(OMB) control number. The rescission 

and removal from FDIC regulations of 

part 390, subpart G, does not create new 

or modify existing information 

collection requirements. Accordingly, 

no submission to OMB will be made 

with respect to the final rule. 

B. The Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

generally requires that, in connection 

with a rulemaking, an agency prepare 

and make available for public comment 

a final regulatory flexibility analysis 

describing the impact of the final rule 

on small entities.19 However, a 

regulatory flexibility analysis is not 

required if the agency certifies that the 

final rule will not have a significant 

economic impact on a substantial 

number of small entities. The Small 

Business Administration (SBA) has 

defined ‘‘small entities’’ to include 

banking organizations with total assets 

of less than or equal to $600 million that 

are independently owned and operated 

or owned by a holding company with 

less than or equal to $600 million in 

total assets.20 Generally, the FDIC 

considers a significant effect to be a 

quantified effect in excess of 5 percent 

of total annual salaries and benefits per 

institution, or 2.5 percent of total 

noninterest expenses. The FDIC believes 

that effects in excess of these thresholds 

typically represent significant effects for 

FDIC-supervised institutions. For the 

reasons described below and under 

section 605(b) of the RFA, the FDIC 

certifies that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

As of June 30, 2020, the FDIC 

supervised 3,270 depository 

institutions,21 of which 2,492 were 

considered small entities for the 

purposes of RFA.22 There are 33 State 

savings associations that are small 

entities for the purposes of RFA.23 This 

final rule rescinds §§ 390.140 and 

390.141. As discussed previously, these 

sections include definitions and crossreferences to other parts of section 390, 

so their rescission has no independent 

significance for institutions or 

borrowers, but rather is a technical 

amendment associated with the 

proposal to rescind subpart G of part 

390 in its entirety. 

As previously discussed, this final 

rule rescinds § 390.142. This section has 

substantial overlap with the 

requirements of ECOA and Regulation B 

and the FHA and HUD’s FHA 

regulations. Therefore, the FDIC 

believes that these aspects of the final 

rule are unlikely to significantly affect 

small FDIC-supervised institutions or 

borrowers. 

The final rule rescinds § 390.143. As 

discussed previously, aspects of 

§ 390.143 are duplicative of prohibitions 

under the general fair lending laws. 

With regard to § 390.143(b), the final 

rule reduces compliance requirements 

associated with maintaining and 

distributing relevant paperwork. The 

FDIC believes that this is likely to pose 

a relatively small benefit to the 33 small 

institutions to which it applies. Further, 

the FDIC believes that it is unlikely that 

the rescission of the requirement to 

establish, maintain, and distribute upon 

request nondiscriminatory loan 

underwriting standards for these 33 

small State savings associations will 

lead to an increase in discriminatory 

lending behavior because these 

institutions are still subject to the 

general fair lending laws. Therefore, the 

FDIC does not believe that this aspect of 

the final rule is likely to have 

substantive effects on small FDICsupervised institutions or borrowers. 

As discussed previously, the final rule 

rescinds § 390.144. Section 390.144(a) is 

substantially similar to, and duplicative 

of, prohibitions under the general 

Federal fair lending laws.24 The FDIC 

also believes that the requirement to 

post an Equal Housing Lender poster, 

discussed above in connection with 12 

CFR 338.4, serves a substantially similar 

purpose as the requirement to ‘‘inform 

each inquirer of his or her right to file 

a written loan application’’ in 12 CFR 

390.144(b). Therefore, the FDIC believes 

that the rescission of § 390.144 is 

unlikely to have any substantive effect 

on small FDIC-supervised institutions or 

borrowers. 

As discussed previously, the final rule 

rescinds § 390.145. Section 390.145 is 

substantially similar to § 338.4 and the 

final rule amends § 338.4 to cover State 

savings associations in addition to 

insured State nonmember banks. 

Therefore, the FDIC believes that this 

aspect of the final rule is unlikely to 

have any substantive effect on small 

FDIC-supervised institutions or 

borrowers. 

As discussed previously, the final rule 

rescinds § 390.146. The requirements of 

§ 390.146 are substantially similar to the 

requirements applicable to insured State 

nonmember banks under § 338.4. 

However, § 338.4, unlike § 390.146, does 

not include a ‘‘recommendation’’ that a 

Spanish-language version of the Equal 

Housing Lender poster be posted in 

offices serving areas with a substantial 

Spanish-speaking population. The FDIC 

does make a Spanish-language poster 

available to the institutions it 

supervises. Given the substantive 

similarity of much of §§ 390.146 to 

338.4, the FDIC believes that rescinding 

it is unlikely to have substantial effects 

on small covered institutions or 

borrowers. 

The final rule rescinds § 390.147. As 

previously discussed, the FDIC believes 

that § 390.147 is duplicative now that 

reporting reason for denial is required 

rather than optional under Regulation C. 

Further, since Regulation C provides a 

partial exemption from reporting reason 

for denial and certain other data points 

for financial institutions that meet 

specified conditions, but no such 

exemption exists for State savings 

associations, the final rule establishes 

parity with respect to the reporting 

requirements for HMDA LARs for State 

savings associations and other FDICsupervised institutions. The FDIC 

believes that this aspect of the final rule 

is unlikely to substantively affect small 

FDIC-supervised institutions or 

borrowers. 

As previously discussed, the final rule 

rescinds § 390.148. The FDIC believes 

that there is significant overlap between 

the requirements of § 390.148(a)–(d) and 


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Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations 8087 

25 12 U.S.C. 4809. 

26Public Law 104–208, 110 Stat. 3009 (1996). 

27 82 FR 15900 (March 30, 2017). 

28 12 U.S.C. 4802(a). 

29 12 U.S.C. 4802(b). 

30 5 U.S.C. 801 et seq. 

31 5 U.S.C. 801(a)(3). 

various aspect of the EEOA. Further, 

§ 390.148(e) & (f) references multiple 

employment laws, including the EEOA, 

which if the rest of § 390.148 were 

rescinded as proposed, would be 

unnecessary. Therefore, the FDIC 

believes that this aspect of the final rule 

is unlikely to substantively affect small 

FDIC-supervised institutions or 

borrowers. 

As previously discussed, the final rule 

rescinds § 390.149. The FDIC has 

procedures for referring complaints to 

HUD regarding lending discrimination 

by financial institutions and these 

procedures apply to complaints 

involving lending by State savings 

associations. However, there appears to 

be no equivalent requirement to the 

provisions in § 390.149 regarding 

referring complaints to the EEOC 

regarding employment discrimination 

by FDIC-supervised institutions. This 

aspect of the final rule thus creates 

parity between State nonmember banks 

and State savings associations with 

respect to discriminatory complaints. 

Given that FDIC-supervised institutions 

are still subject to applicable elements 

of the EEOA and FDIC regulations and 

procedures, the FDIC does not believe 

that this aspect of the final rule is likely 

to have a substantive effect on covered 

institutions or their employees. 

As previously discussed, the final rule 

rescinds § 390.150. This section 

contains guidelines intended to serve as 

a resource for State savings associations 

when developing and implementing 

nondiscriminatory lending policies. 

Small State savings associations, like 

other FDIC-supervised banks, remain 

subject to Federal fair lending laws and 

regulations and the FDIC does not 

believe removal of these guidelines will 

have any meaningful effect on these 

institutions or their borrowers. 

Finally, the final rule makes some 

technical changes to FDIC’s part 338 in 

order to make it applicable to State 

savings associations and provide for 

Equal Housing Lender posters to state 

the accurate CRC mailing address. As 

previously discussed, these changes are 

unlikely to pose significant effects for 

small State savings associations because 

they are already subject to substantively 

similar regulations. 

Rescinding part 390, subpart G, also 

will serve to streamline the FDIC’s rules 

and eliminate unnecessary, 

inconsistent, and duplicative 

regulations. The final rule generally 

provides for all small insured State 

nonmember banks and State savings 

associations to be subject to the same 

nondiscrimination requirements. 

The FDIC does not have data with 

which to estimate the costs that State 

savings associations currently incur to 

comply with subpart G or how those 

costs will change pursuant to this final 

rule. However, since this final rule 

affects only 33 small entities, and since 

the differences between subpart G and 

existing regulation and law are modest, 

the FDIC certifies that this final rule will 

not have a significant economic effect 

on a substantial number of small 

entities. 

C. Plain Language 

Section 722 of the Gramm-LeachBliley Act 25 requires each Federal 

banking agency to use plain language in 

all of its proposed and final rules 

published after January 1, 2000. The 

FDIC has sought to present the final rule 

in a simple and straightforward manner 

and did not receive any comments on 

the use of plain language. 

D. The Economic Growth and 

Regulatory Paperwork Reduction Act 

Under section 2222 of the Economic 

Growth and Regulatory Paperwork 

Reduction Act of 1996 (EGRPRA), the 

FDIC is required to review all of its 

regulations, at least once every 10 years, 

in order to identify any outdated or 

otherwise unnecessary regulations 

imposed on insured institutions.26 The 

FDIC, along with the other Federal 

banking agencies, submitted a Joint 

Report to Congress on March 21, 2017 

(EGRPRA Report) discussing how the 

review was conducted, what has been 

done to date to address regulatory 

burdens, and further measures the FDIC 

will take to address issues that were 

identified.27 As noted in the EGRPRA 

Report, the FDIC is continuing to 

streamline and clarify its regulations 

through the OTS rule integration 

process. By removing outdated or 

unnecessary regulations, such as part 

390, subpart G, this final rule 

complements other actions that the 

FDIC has taken, separately and with the 

other Federal banking agencies, to 

further the EGRPRA mandate. 

E. Riegle Community Development and 

Regulatory Improvement Act of 1994 

Pursuant to section 302(a) of the 

Riegle Community Development and 

Regulatory Improvement Act 

(RCDRIA),28 in determining the effective 

date and administrative compliance 

requirements for new regulations that 

impose additional reporting, disclosure, 

or other requirements on insured 

depository institutions (IDIs), each 

Federal banking agency must consider, 

consistent with principles of safety and 

soundness and the public interest, any 

administrative burdens that such 

regulations would place on depository 

institutions, including small depository 

institutions, and customers of 

depository institutions, as well as the 

benefits of such regulations. In addition, 

section 302(b) of RCDRIA requires new 

regulations and amendments to 

regulations that impose additional 

reporting, disclosures, or other new 

requirements on IDIs generally to take 

effect on the first day of a calendar 

quarter that begins on or after the date 

on which the regulations are published 

in final form.29

As previously stated, the final rule 

removes part 390, subpart G, from the 

Code of Federal Regulations because, 

after careful review and consideration, 

the FDIC believes it is largely 

unnecessary, redundant, or duplicative 

of existing statutes and regulations. In 

addition, the final also includes 

amendments to the FDIC’s part 338 to 

make it applicable to State savings 

associations, introduce new definitions, 

and to make technical conforming edits. 

These amendments do not impose any 

additional reporting, disclosure, or other 

requirements on IDIs. Because the final 

rule does not impose additional 

reporting, disclosure, or other new 

requirements on IDIs, section 302 of the 

RCDRIA does not apply. 

F. Congressional Review Act 

For purposes of the Congressional 

Review Act, the Office of Management 

and Budget (OMB) makes a 

determination as to whether a final rule 

constitutes a ‘‘major’’ rule. If a rule is 

deemed a ‘‘major rule’’ 30 by the OMB, 

the Congressional Review Act generally 

provides that the rule may not take 

effect until at least 60 days following its 

publication.31

The Congressional Review Act (CRA) 

defines a ‘‘major rule’’ as any rule that 

the Administrator of the Office of 

Information and Regulatory Affairs of 

the OMB finds has resulted in or is 

likely to result in (A) an annual effect 

on the economy of $100,000,000 or 

more; (B) a major increase in costs or 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies or geographic 

regions, or (C) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

enterprises to compete with foreign 


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8088 Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations 

32 5 U.S.C. 804(2). 

based enterprises in domestic and 

export markets.32

The OMB has determined that this 

final rule is not a ‘‘major rule’’ for 

purposes of the CRA. As required by the 

Congressional Review Act, the FDIC 

will submit the final rule and other 

appropriate reports to Congress and the 

Government Accountability Office for 

review. 

List of Subjects 

12 CFR Part 338 

Aged, Banks, banking, Civil rights, 

Credit, Fair housing, Individuals with 

disabilities, Marital status 

discrimination, Mortgages, Religious 

discrimination, Reporting and 

recordkeeping requirements, Savings 

associations, Sex discrimination, Signs 

and symbols. 

12 CFR Part 390 

Administrative practice and 

procedure, Advertising, Aged, Civil 

rights, Conflict of interests, Credit, 

Crime, Equal employment opportunity, 

Fair housing, Government employees, 

Individuals with disabilities, Reporting 

and recordkeeping requirements, 

Savings associations. 

Authority and Issuance 

For the reasons stated in the 

preamble, the FDIC amends 12 CFR 

parts 338 and 390 as follows: 

■ 1. Revise part 338 to read as follows: 

PART 338—FAIR HOUSING 

Subpart A—Advertising 

Sec. 

338.1 Purpose. 

338.2 Definitions applicable to this subpart. 

338.3 Nondiscriminatory advertising. 

338.4 Fair housing poster. 

Subpart B—Recordkeeping 

338.5 Purpose. 

338.6 Definitions applicable to this subpart. 

338.7 Recordkeeping requirements. 

338.8 Compilation of loan data in register 

format. 

338.9 Mortgage lending of a controlled 

entity. 

Authority: 12 U.S.C. 1817, 1818, 1819, 

1820(b), 2801 et seq.; 15 U.S.C. 1691 et seq.; 

42 U.S.C. 3605, 3608; 12 CFR parts 1002, 

1003; 24 CFR part 110. 

Subpart A—Advertising 

§ 338.1 Purpose. 

The purpose of this subpart is to 

prohibit FDIC-supervised institutions 

from engaging in discriminatory 

advertising with regard to residential 

real estate-related transactions. This 

subpart also requires FDIC-supervised 

institutions to publicly display either 

the Equal Housing Lender poster set 

forth in § 338.4(b) or the Equal Housing 

Opportunity poster prescribed by 24 

CFR part 110 of the United States 

Department of Housing and Urban 

Development’s regulations. This subpart 

enforces section 805 of title VIII of the 

Civil Rights Act of 1968, 42 U.S.C. 

3601–3619 (Fair Housing Act), as 

amended by the Fair Housing 

Amendments Act of 1988. 

§ 338.2 Definitions applicable to this 

subpart. 

For purposes of this subpart: 

(a) Bank means an insured state 

nonmember bank as defined in section 

3 of the Federal Deposit Insurance Act. 

(b) Dwelling means any building, 

structure, or portion thereof which is 

occupied as, or designed or intended for 

occupancy as, a residence by one or 

more families, and any vacant land 

which is offered for sale or lease for the 

construction or location thereon of any 

such building, structure, or portion 

thereof. 

(c) FDIC-supervised institution means 

either a bank or a State savings 

association. 

(d) Handicap means, with respect to 

a person: 

(1) A physical or mental impairment 

which substantially limits one or more 

of such person’s major life activities; 

(2) A record of having such an 

impairment; or 

(3) Being regarded as having such an 

impairment, but such term does not 

include current, illegal use of or 

addiction to a controlled substance (as 

defined in section 102 of the Controlled 

Substances Act (21 U.S.C. 802)). 

(e) Familial status means one or more 

individuals (who have not attained the 

age of 18 years) being domiciled with: 

(1) A parent or another person having 

legal custody of such individual or 

individuals; or 

(2) The designee of such parent or 

other person having such custody, with 

the written permission of such parent or 

other person; and 

(3) The protections afforded against 

discrimination on the basis of familial 

status shall apply to any person who is 

pregnant or is in the process of securing 

legal custody of any individual who has 

not attained the age of 18 years. 

(f) State savings association has the 

same meaning as in section (3)(b)(3) of 

the Federal Deposit Insurance Act, 12 

U.S.C. 1813(b)(3). 

§ 338.3 Nondiscriminatory advertising. 

(a) Any FDIC-supervised institution 

which directly or through third parties 

engages in any form of advertising of 

any loan for the purpose of purchasing, 

constructing, improving, repairing, or 

maintaining a dwelling or any loan 

secured by a dwelling shall prominently 

indicate in such advertisement, in a 

manner appropriate to the advertising 

medium and format utilized, that the 

FDIC-supervised institutions makes 

such loans without regard to race, color, 

religion, national origin, sex, handicap, 

or familial status. 

(1) With respect to written and visual 

advertisements, this paragraph (a) may 

be satisfied by including in the 

advertisement a copy of the logotype 

with the Equal Housing Lender legend 

contained in the Equal Housing Lender 

poster prescribed in § 338.4(b) or a copy 

of the logotype with the Equal Housing 

Opportunity legend contained in the 

Equal Housing Opportunity poster 

prescribed in 24 CFR 110.25(a) of the 

United States Department of Housing 

and Urban Development’s regulations. 

(2) With respect to oral 

advertisements, this paragraph (a) may 

be satisfied by a statement, in the 

spoken text of the advertisement, that 

the FDIC-supervised institution is an 

‘‘Equal Housing Lender’’ or an ‘‘Equal 

Opportunity Lender.’’ 

(3) When an oral advertisement is 

used in conjunction with a written or 

visual advertisement, the use of either of 

the methods specified in paragraphs 

(a)(1) and (2) of this section will satisfy 

the requirements of this paragraph (a). 

(b) No advertisement shall contain 

any words, symbols, models, or other 

forms of communication which express, 

imply, or suggest a discriminatory 

preference or policy of exclusion in 

violation of the provisions of the Fair 

Housing Act or the Equal Credit 

Opportunity Act. 

§ 338.4 Fair housing poster. 

(a) Each FDIC-supervised institution 

engaged in extending loans for the 

purpose of purchasing, constructing, 

improving, repairing, or maintaining a 

dwelling or any loan secured by a 

dwelling shall conspicuously display 

either the Equal Housing Lender poster 

set forth in paragraph (b) of this section 

or the Equal Housing Opportunity 

poster prescribed by 24 CFR 110.25(a) of 

the United States Department of 

Housing and Urban Development’s 

regulations, in a central location within 

the FDIC-supervised institution where 

deposits are received or where such 

loans are made, in a manner clearly 

visible to the general public entering the 

area, where the poster is displayed. 

(b) The Equal Housing Lender Poster 

shall be at least 11 by 14 inches in size 

and have the following text: 


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Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations 8089 

We Do Business in Accordance with 

Federal Fair Lending Laws. 

UNDER THE FEDERAL FAIR 

HOUSING ACT, IT IS ILLEGAL, ON 

THE BASIS OF RACE, COLOR, 

NATIONAL ORIGIN, RELIGION, SEX, 

HANDICAP, OR FAMILIAL STATUS 

(HAVING CHILDREN UNDER THE AGE 

OF 18) TO: 

• Deny a loan for the purpose of 

purchasing, constructing, improving, 

repairing or maintaining a dwelling or 

to deny any loan secured by a dwelling; 

or 

• Discriminate in fixing the amount, 

interest rate, duration, application 

procedures, or other terms or conditions 

of such a loan or in appraising property. 

IF YOU BELIEVE YOU HAVE BEEN 

DISCRIMINATED AGAINST, YOU 

SHOULD SEND A COMPLAINT TO: 

Assistant Secretary for Fair Housing 

and Equal Opportunity, Department of 

Housing and Urban Development, 

Washington, DC 20410. 

For processing under the Federal Fair 

Housing Act 

AND TO: 

Federal Deposit Insurance 

Corporation, Consumer Response 

Center, [Insert address for the Consumer 

Response Center stated on the FDIC’s 

website at www.fdic.gov] 

For processing under the FDIC 

Regulations. 

UNDER THE EQUAL CREDIT 

OPPORTUNITY ACT, IT IS ILLEGAL 

TO DISCRIMINATE IN ANY CREDIT 

TRANSACTION: 

• On the basis of race, color, national 

origin, religion, sex, marital status, or 

age; 

• Because income is from public 

assistance; or 

• Because a right has been exercised 

under the Consumer Credit Protection 

Act. 

IF YOU BELIEVE YOU HAVE BEEN 

DISCRIMINATED AGAINST, YOU 

SHOULD SEND A COMPLAINT TO: 

Federal Deposit Insurance 

Corporation, Consumer Response 

Center, [Insert address for the Consumer 

Response Center stated on the FDIC’s 

website at www.fdic.gov] 

(c) The Equal Housing Lender Poster 

specified in this section was adopted 

under 24 CFR 110.25(b) of the United 

States Department of Housing and 

Urban Development’s rules and 

regulations as an authorized 

substitution for the poster required in 

§ 110.25(a) of those rules and 

regulations. 

Subpart B—Recordkeeping 

§ 338.5 Purpose. 

The purpose of this subpart is twofold. First, this subpart notifies all FDICsupervised institutions of their duty to 

collect and retain certain information 

about a home loan applicant’s personal 

characteristics in accordance with 12 

CFR part 1002 (Regulation B of the 

Bureau of Consumer Financial 

Protection) in order to monitor an 

institution’s compliance with the Equal 

Credit Opportunity Act of 1974 (15 

U.S.C. 1691 et seq.). Second, this 

subpart notifies certain FDIC-supervised 

institutions of their duty to maintain, 

update, and report a register of home 

loan applications in accordance with 12 

CFR part 1003 (Regulation C of the 

Bureau of Consumer Financial 

Protection), which implements the 

Home Mortgage Disclosure Act (12 

U.S.C. 2801 et seq.). 

§ 338.6 Definitions applicable to this 

subpart. 

For purposes of this subpart— 

(a) Bank means an insured State 

nonmember bank as defined in section 

3 of the Federal Deposit Insurance Act, 

12 U.S.C. 1813. 

(b) Controlled entity means a 

corporation, partnership, association, or 

other business entity with respect to 

which a bank possesses, directly or 

indirectly, the power to direct or cause 

the direction of management and 

policies, whether through the 

ownership of voting securities, by 

contract, or otherwise. 

(c) FDIC-supervised institution means 

either a bank or a State savings 

association. 

(d) State savings association has the 

same meaning as in section 3(b)(3) of 

the Federal Deposit Insurance Act, 12 

U.S.C. 1813(b)(3). 

§ 338.7 Recordkeeping requirements. 

All FDIC-supervised institutions that 

receive an application for credit 

primarily for the purchase or 

refinancing of a dwelling occupied or to 

be occupied by the applicant as a 

principal residence where the extension 

of credit will be secured by the dwelling 

shall request and retain the monitoring 

information required by Regulation B of 

the Bureau of Consumer Financial 

Protection (12 CFR part 1002). 

§ 338.8 Compilation of loan data in register 

format. 

FDIC-supervised institutions and 

other lenders required to file a Home 

Mortgage Disclosure Act loan/ 

application register (LAR) with the 

Federal Deposit Insurance Corporation 

shall collect, record and report such 

LAR in accordance with Regulation C of 

the Bureau of Consumer Financial 

Protection (12 CFR part 1003). 

§ 338.9 Mortgage lending of a controlled 

entity. 

Any bank which refers any applicants 

to a controlled entity and which 

purchases any covered loan as defined 

in Regulation C of the Bureau of 

Consumer Financial Protection (12 CFR 

part 1003) originated by the controlled 

entity, as a condition to transacting any 

business with the controlled entity, 

shall require the controlled entity to 

enter into a written agreement with the 

bank. The written agreement shall 

provide that the entity shall: 

(a) Comply with the requirements of 

§§ 338.3, 338.4, and 338.7, and, if 

otherwise subject to Regulation C of the 

Bureau of Consumer Financial 

Protection (12 CFR part 1003), § 338.8; 

(b) Open its books and records to 

examination by the Federal Deposit 

Insurance Corporation; and 

(c) Comply with all instructions and 

orders issued by the Federal Deposit 

Insurance Corporation with respect to 

its home loan practices. 

PART 390—REGULATIONS 

TRANSFERRED FROM THE OFFICE OF 

THRIFT SUPERVISION 

■ 2. The authority citation for part 390 

is revised to read as follows: 

Authority: 12 U.S.C. 1819. 

Subpart Q also issued under 12 U.S.C. 

1462; 1462a; 1463; 1464. 

Subpart W also issued under 12 U.S.C. 

1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m; 

78n; 78p; 78w. 

Subpart G—[Removed and Reserved] 

■ 3. Remove and reserve subpart G, 

consisting of §§ 390.140 through 

390.150. 

Federal Deposit Insurance Corporation. 

By order of the Board of Directors. 

Dated at Washington, DC, on December 15, 

2020. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2020–28452 Filed 2–2–21; 8:45 am] 

BILLING CODE 6714–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 303 and 390 

RIN 3064–AF36 

Removal of Transferred OTS 

Regulations Regarding Application 

Processing Procedures of State 

Savings Associations and Conforming 

Amendments to Other Regulations 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 


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