PART 128—NONDISCRIMINATION REQUIREMENTS Authority: 12 U.S.C. 1464, 5412(b)(2)(B). Source: 76 FR 48978, August 9, 2011, unless otherwise noted. § 128.1 Definitions. As used in this part 128— (a) Application. (b) Savings association. (c) Dwelling. § 128.2 Nondiscrimination in lending and other services. (a) No savings association may deny a loan or other service, or discriminate in the purchase of loans or securities or discriminate in fixing the amount, interest rate, duration, application procedures, collection or enforcement procedures, or other terms or conditions of such loan or other service on the basis of the age or location of the dwelling, or on the basis of the race, color, religion, sex, handicap, familial status (having one or more children under the age of 18), marital status, age (provided the person has the capacity to contract) or national origin of: (1) An applicant or joint applicant; (2) Any person associated with an applicant or joint applicant regarding such loan or other service, or with the purposes of such loan or other service; (3) The present or prospective owners, lessees, tenants, or occupants of the dwelling(s) for which such loan or other service is to be made or given; (4) The present or prospective owners, lessees, tenants, or occupants of other dwellings in the vicinity of the dwelling(s) for which such loan or other service is to be made or given. (b) A savings association shall consider without prejudice the combined income of joint applicants for a loan or other service. (c) No savings association may discriminate against an applicant for a loan or other service on any prohibited basis (as defined in 12 CFR 202.2(z) and 24 CFR part 100). Note to § 128.2: See also, § 128.3 Nondiscrimination in applications. (a) No savings association may discourage, or refuse to allow, receive, or consider, any application, request, or inquiry regarding a loan or other service, or discriminate in imposing conditions upon, or in processing, any such application, request, or inquiry on the basis of the age or location of the dwelling, or on the basis of the race, color, religion, sex, handicap, familial status (having one or more children under the age of 18), marital status, age (provided the person has the capacity to contract), national origin, or other characteristics prohibited from consideration in § 128.2(c) of this part, of the prospective borrower or other person, who: (1) Makes application for any such loan or other service; (2) Requests forms or papers to be used to make application for any such loan or other service; or (3) Inquires about the availability of such loan or other service. (b) A savings association shall inform each inquirer of his or her right to file a written loan application, and to receive a copy of the association's underwriting standards. Note to § 128.3: See also, § 128.4 Nondiscriminatory advertising. No savings association may directly or indirectly engage in any form of advertising that implies or suggests a policy of discrimination or exclusion in violation of title VIII of the Civil Rights Acts of 1968, the Equal Credit Opportunity Act, or this part 128. Advertisements for any loan for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling or any loan secured by a dwelling shall include a facsimile of the following logotype and legend: § 128.5 Equal Housing Lender Poster. (a) Each savings association shall post and maintain one or more Equal Housing Lender Posters, the text of which is prescribed in paragraph (b) of this section, in the lobby of each of its offices in a prominent place or places readily apparent to all persons seeking loans. The poster shall be at least 11 by 14 inches in size, and the text shall be easily legible. It is recommended that savings associations post a Spanish language version of the poster in offices serving areas with a substantial Spanish-speaking population. (b) The text of the Equal Housing Lender Poster shall be as follows: 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: [Insert contact information for appropriate Federal regulator] For processing under applicable 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: [Insert contact information for appropriate Federal regulator] § 128.6 Loan application register. Savings associations and other lenders required to file Home Mortgage Disclosure Act Loan Application Registers with the OCC in accordance with 12 CFR part 203 must enter the reason for denial, using the codes provided in 12 CFR part 203, with respect to all loan denials. § 128.7 Nondiscrimination in employment. (a) No savings association shall, because of an individual's race, color, religion, sex, or national origin: (1) Fail or refuse to hire such individual; (2) Discharge such individual; (3) Otherwise discriminate against such individual with respect to such individual's compensation, promotion, or the terms, conditions, or privileges of such individual's employment; or (4) Discriminate in admission to, or employment in, any program of apprenticeship, training, or retraining, including on-the-job training. (b) No savings association shall limit, segregate, or classify its employees in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect such individual's status as an employee because of such individual's race, color, religion, sex, or national origin. (c) No savings association shall discriminate against any employee or applicant for employment because such employee or applicant has opposed any employment practice made unlawful by Federal, state, or local law or regulation or because he has in good faith made a charge of such practice or testified, assisted, or participated in any manner in an investigation, proceeding, or hearing of such practice by any lawfully constituted authority. (d) No savings association shall print or publish or cause to be printed or published any notice or advertisement relating to employment by such savings association indicating any preference, limitation, specification, or discrimination based on race, color, religion, sex, or national origin. (e) This regulation shall not apply in any case in which the Federal Equal Employment Opportunities law is made inapplicable by the provisions of section 2000e-1 or sections 2000e-2(e) through (j) of title 42, United States Code. (f) Any violation of the following laws or regulations by a savings association shall be deemed to be a violation of this part 128: (1) The Equal Employment Opportunity Act, as amended, 42 U.S.C. 2000e-2000h-2, and Equal Employment Opportunity Commission (EEOC) regulations at 29 CFR part 1600; (2) The Age Discrimination in Employment Act, 29 U.S.C. 621-633, and EEOC and Department of Labor regulations; (3) Office of Federal Contract Compliance Programs (OFCCP) regulations at 41 CFR part 60; (4) The Veterans Employment and Readjustment Act of 1972, 38 U.S.C. 2011-2012, and the Vietnam Era Veterans Readjustment Adjustment Assistance Act of 1974, 38 U.S.C. 2021-2026; (5) The Rehabilitation Act of 1973, 29 U.S.C. 701 et seq.; (6) The Immigration and Nationality Act, 8 U.S.C. 1324b, and INS regulations at 8 CFR part 274a. § 128.8 Complaints. Complaints alleging violations of the Fair Housing Act by a savings association shall be referred to the Assistant Secretary for Fair Housing and Equal Opportunity, U.S. Department of Housing and Urban Development, Washington, DC 20410 for processing under the Fair Housing Act, and to the appropriate Federal regulator for processing under applicable regulations. Complaints regarding discrimination in employment by a savings association should be referred to the Equal Employment Opportunity Commission, Washington, DC 20506 and a copy, for information only, sent to the appropriate Federal regulator. § 128.9 Guidelines relating to nondiscrimination in lending. (a) General. (b) Loan underwriting standards. (c) Discriminatory practices Discrimination on the basis of sex or marital status. (2) Discrimination on the basis of language. (3) Income of husbands and wives. (4) Supplementary income. (5) Applicant's prior history. (i) In some instances, past credit difficulties may have resulted from discriminatory practices; (ii) A policy favoring applicants who previously owned homes may perpetuate prior discrimination; (iii) A current, stable earnings record may be the most reliable indicator of credit-worthiness, and entitled to more weight than factors such as educational level attained; (iv) Job or residential changes may indicate upward mobility; and (v) Preferring applicants who have done business with the lender can perpetuate previous discriminatory policies. (6) Income level or racial composition of area. (7) Age and location factors. (8) Fair Housing Act (title VIII, Civil Rights Act of 1968, as amended). (d) Marketing practices. § 128.10 Supplementary guidelines. The policy statement found at 12 CFR 128.9 supplements this part and should be read together with this part. Refer also to the HUD Fair Housing regulations at 24 CFR parts 100 through 125, Federal Reserve Regulation B at 12 CFR part 202, and Federal Reserve Regulation C at 12 CFR part 203. § 128.11 Nondiscriminatory appraisal and underwriting. (a) Appraisal. (b) Underwriting. Note to § 128.11: See also,