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

Summary:

The Federal Financial Institutions Examination Council (FFIEC) has issued a statement of principles on examination principles related to valuation discrimination and bias in residential lending. The statement provides guidance for member entities on assessing whether their supervised institutions' compliance and risk management practices are effective in identifying and mitigating discrimination or bias in residential property valuation practices. The principles are designed for both consumer compliance and safety and soundness examinations and aim to promote transparency into the examination process and support risk-focused examination work.