To:  The Chief Executive Officers and Compliance Officers of all National Banks, Department
     and Division Heads, all Examining Personnel, and other interested parties.

On March 8, 1994, the Comptroller, as a member of the Interagency Task Force on Fair Lending,
joined with the top officials of the nine other member agencies to announce a policy statement on
discrimination in lending.  The policy statement has been formally approved and adopted by the
member agencies and was published in the Federal Register on April 15, 1994.

The agencies participating in the Interagency Task Force on Fair Lending are:

       The Department of Housing and Urban Development
       The Department of Justice
       The Office of the Comptroller of the Currency
       The Board of Governors of the Federal Reserve
       The Office of Thrift Supervision
       The Federal Deposit Insurance Corporation
       The Federal Housing Finance Board
       The National Credit Union Administration
       The Federal Trade Commission
       The Office of Federal Housing Enterprise Oversight

The task force policy statement on fair lending describes what constitutes discrimination under the
Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FH Act) for purposes of
administrative enforcement of those statutes.  The policy statement is designed to provide guidance
to lenders consistent with those statutes and their implementing regulations.  The policy statement
does not create or confer any substantive or procedural rights on third parties that could be
enforceable in any administrative or civil proceeding.

The policy statement was issued to inform lenders about what factors the agencies consider in
determining whether lending discrimination exists, and to provide the agencies with a foundation
for future interpretations and rulemakings.  It will be used by the agencies as a tool for administrative
enforcement of fair lending statutes.  The policy statement applies to all lenders, including banks and
thrifts, credit unions, mortgage brokers, finance companies, retailers, credit card issuers and any
other persons or entities who extend credit of any type.



The policy statement describes the ECOA and the FH Act and identifies specific discriminatory
practices prohibited by these laws.  It continues with a description of the three methods of proving
lending discrimination under these statutes -- overt evidence of discrimination, evidence of disparate
treatment, and evidence of disparate impact.  The statement describes the steps involved in each of
these methods of proof and provides concrete examples of how they may apply.

Commonly asked questions about fair lending violations are addressed in the final section.  Answers
to these questions include a detailed discussion of the criteria the agencies will use in determining
the nature and severity of sanctions to address discriminatory lending practices, and the conditions
under which the primary regulatory agencies will make referrals for investigation and enforcement. 
How the principles outlined in the policy statement will apply in practice will, of course, depend on
the facts in each case.

All interested parties are encouraged to review this policy statement.  Questions on how the
principles apply in specific cases are encouraged.  For further information, contact R. Russell Bailey,
Fair Lending Specialist, Compliance Management, (202) 874-4446, or Margaret Hesse, Attorney,
Bank Operations and Assets Division, (202) 874-4460.  National banks and others may send their
comments to:  Communications Division, Office of the Comptroller of the Currency, 250 E Street,
S.W., Washington, DC 20219, Attention Docket No. 94-04.



_______________________
Stephen M. Cross
Deputy Comptroller for
  Compliance Management


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