Morrison & Foerster discusses FDIC’s Release of Proposed Third-Party Lending Guidance

On July 29, 2016, the board of directors of the Federal Deposit Insurance Corporation (FDIC) released a proposal regarding third-party lending guidance (“Proposed Guidance”) as part of a package of materials designed to “improve the transparency and clarity of the FDIC’s supervisory policies and practices.” The Proposed Guidance elaborates on previously issued agency guidance on managing third-party risks[1] and, if finalized, could apply to all FDIC-supervised institutions that engage in third-party lending programs.

The Proposed Guidance affirms that an institution’s board of directors and senior management are responsible for managing, identifying and controlling the risks associated with lending activities … Read more