Which entity is NOT directly involved in fair lending by federal financial institutions regulatory agencies?

Which entity is NOT directly involved in fair lending by federal financial institutions regulatory agencies?

• A. OCC
• B. Federal Reserve System
• C. Fannie Mae
• D. Federal Deposit Insurance Corporation

Answer: (C)

The main idea is which organizations regulate fair lending within banks. The federal banking regulators—the Office of the Comptroller of the Currency, the Federal Reserve System, and the Federal Deposit Insurance Corporation—supervise depository institutions and enforce fair-lending laws during examinations. Fannie Mae, however, is not a regulator. It’s a government-sponsored enterprise that buys mortgages from lenders and is supervised by FHFA. While lenders must meet fair-lending rules to sell loans to Fannie Mae, Fannie Mae itself does not directly regulate banks. So the entity not directly involved is Fannie Mae.

The main idea is which organizations regulate fair lending within banks. The federal banking regulators—the Office of the Comptroller of the Currency, the Federal Reserve System, and the Federal Deposit Insurance Corporation—supervise depository institutions and enforce fair-lending laws during examinations. Fannie Mae, however, is not a regulator. It’s a government-sponsored enterprise that buys mortgages from lenders and is supervised by FHFA. While lenders must meet fair-lending rules to sell loans to Fannie Mae, Fannie Mae itself does not directly regulate banks. So the entity not directly involved is Fannie Mae.