On November 14, 2022, Senior Deputy Comptroller for Bank Supervision Policy Grovetta N. Gardineer spoke at the 2022 CRA & Fair Lending Colloquium on behalf of the Acting Comptroller. Gardineer talked about several OCC priorities, including the OCC’s ongoing efforts to ensure that OCC regulated financial institutions provide fair and equitable financial services.
In her remarks, Gardineer highlighted the OCC’s efforts to ensure that the federal banking system provides fair access and treats customers fairly. These initiatives include modernizing and updating processes and operations by enhancing the agency’s risk-based supervisory approach. In particular, the OCC routinely reviews and updates its annual risk-based processes for screening bank home mortgage lending activities to ensure focus is on banks with higher fair lending risk; conducts fair lending risk assessments during every supervisory cycle for each bank that engages in retail lending; ensures banks that are using advanced analytics in their underwriting systems and fair lending risk management programs are following fair lending rules; and enhances the available tools, resources, and training to support compliance with fair lending laws.
Gardineer also talked about the OCC’s efforts aimed at reducing persistent economic inequality and growing trust in banking. These include working jointly with the other federal banking agencies to modernize the CRA rules and taking an active role on the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE).
The Senior Deputy Comptroller also emphasized that the OCC supports the growing use of advanced analytics such as artificial intelligence or machine learning to help reduce inequality and to address safety, soundness, and fairness risks. And while the agency recognizes the benefits of these applications, they are also aware of the risks that come with these technologies, thus appropriate oversight, expertise, and controls will be implemented.
Gardineer also briefly talked about the OCC’s Project REACh where the agency convenes leaders from banking, business, technology, community advocates and national civil rights organizations to reduce specific barriers that prevent full, equal, and fair participation in the nation’s economy. She closed her remarks by highlighting that the OCC is focused on strengthening its supervision processes and resources devoted to compliance with fair lending laws, while enhancing its ability to remain agile and successfully execute the agency’s mission.
A copy of the full remarks can be found here.