Mortgage Loan Prequalifications Applications or Not

A Guide for Complying with Regulations B and C

The enclosed guide, Mortgage Loan Prequalifications: Applications or Not?, was produced to provide guidance to financial institutions. The guide answers questions about mortgage loan prequalification programs and compliance with the Equal Credit Opportunity Act (ECOA - Regulation B) and the Home Mortgage Disclosure Act (HMDA - Regulation C). This guide was developed by staff at the FDIC and provides guidance to FDIC-regulated institutions as well.

The guide will assist credit unions to create mortgage loan prequalification programs and services that provide good member service and comply with important components of the fair lending laws and regulations, including ECOA, HMDA, and the Fair Housing Act (FHA). The guide should also help credit unions minimize technical and substantive violations of the fair lending laws.

NCUA's mission is to promote and enforce compliance with fair lending and other consumer protection laws and regulations. Our mission is accomplished, in part, through compliance reviews during the examination process. NCUA hopes to further its mission to promote compliance by assisting financial institutions through education and guidance, such as the distribution of this guide.