NR 98-33
March 24, 1998

         Comptroller Voices Concern over Lending Study

WASHINGTON, D.C. -- The OCC expressed concern today about the
implications of a study on lending practices conducted by the
Fair Housing Council, which  tested 72 Washington-area
mortgage lending institutions to determine whether minorities
were subject to illegal discrimination in the pre-application
process.

"I am troubled by the implications of the information
reported today, " said Comptroller of the Currency Eugene A.
Ludwig.  "At the OCC we have zero tolerance for lending
discrimination in the national banking system.  I look forward
to having the opportunity to review the Council's complete
findings."  

The OCC is the first federal bank regulatory agency to
implement a testing program, and in 1996,  issued a report on
the results of its own pilot program to assess the use of
testers to identify fair lending violations at national banks.
"We consider, on a case-by-case basis, the use of matched pair
tests to supplement our fair lending program, " added
Comptroller Ludwig.  

The OCC also issued interim guidelines on self-assessments in
OCC Bulletin 95-51, and encouraged national banks to develop
their own self-testing programs.  For more information on
the OCC's fair-lending programs, visit the agency's Internet
site at http:\\www.occ.treas.gov.
                                
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The OCC charters, regulates and examines approximately
2,800 national banks and 66 federal branches of foreign
banks in the U.S., accounting for more thank half the
nation's banking assets.  Its mission is to ensure a
safe and sound and competitive national banking system
that supports the citizens, communities and economy of
the United States.