WASHINGTON–The FDIC has released new proposed standards for oversight of third-party lending, including mortgages.
The new standards would apply greater scrutiny to banks that use third parties.
The FDIC said it is looking at arrangements that rely on a third party to perform a significant aspect of the origination process, including marketing, borrower solicitation, underwriting, loan pricing, loan origination, customer service, consumer disclosures, regulatory compliance, servicing, debt collection, and data collection, aggregation or reporting.
Among the statements made by FDIC in announcing the proposal: “The proposed guidance emphasizes that institutions should establish a third-party lending risk management program and compliance management system (CMS) that is commensurate with the significance, complexity, risk profile, transaction volume, and number of third-party lending relationships. Consistent with existing guidance, the risk management program and CMS should address risk assessment, due diligence and oversight, and contract structuring when selecting and managing individual third-party lending relationships.”
The FDIC is accepting comment on its proposal through Sept. 12.