[Federal Register Volume 71, Number 109 (Wednesday, June 7, 2006)]
[Rules and Regulations]
[Page 33138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-8845]



[[Page 33137]]

-----------------------------------------------------------------------

Part IV





Department of Housing and Urban Development





-----------------------------------------------------------------------



24 CFR Parts 81, 115, and 203



Authority of Agencies in the Fair Housing Assistance Program To 
Investigate Allegations of Discrimination in Lending Complaints



Prohibition of Property Flipping in Single Family Mortgage Insurance 
Programs



Regulatory Amendments To Strengthen Prevention of Predatory Lending 
Practices; Rules and Proposed Rule

  Federal Register / Vol. 71, No. 109 / Wednesday June 7, 2006 / Rules 
and Regulations  

[[Page 33138]]


-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 115

[Docket No. FR-5047-N-01]


Authority of Agencies in the Fair Housing Assistance Program To 
Investigate Allegations of Discrimination in Lending Complaints

AGENCY: Office of the Assistant Secretary for Fair Housing and Equal 
Opportunity, HUD.

ACTION: Statement of policy.

-----------------------------------------------------------------------

SUMMARY: This statement of policy advises the public that HUD does not 
view two recent fair housing federal court decisions as in any way 
affecting the authority of state and local agencies to enforce their 
own fair housing laws that HUD has certified as substantially 
equivalent to the federal Fair Housing Act. State and local fair 
housing enforcement agencies administering substantially equivalent 
fair housing laws have the authority to enforce those statutes and 
ordinances against any respondent, including a national bank, within 
their jurisdictions. This is not a new policy. This statement of policy 
clarifies existing regulations at 24 CFR 115.202.

FOR FURTHER INFORMATION CONTACT: Bryan Greene, Deputy Assistant 
Secretary for Enforcement and Programs, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 5204, Washington, DC 20410-
8000; telephone (202) 619-8046 (this is not a toll-free number). 
Persons with hearing or speech impairments may access this number 
through TTY by calling the toll-free Federal Information Relay Service 
at (800) 877-8339.

SUPPLEMENTARY INFORMATION: Two recent, related decisions in the United 
States District Court for the Southern District of New York (The Office 
of the Comptroller of the Currency v. Spitzer, 396 F.Supp.2d 383 
(S.D.N.Y. 2005) (``OCC v. Spitzer'') and The Clearing House 
Association, L.L.C. v. Spitzer, 394 F.Supp.2d 620 (S.D.N.Y. 2005) 
(``Clearing House v. Spitzer'')), rejected the New York Attorney 
General's assertion of visitorial authority over national banks in 
order to enforce the state's fair housing law. As a result of these 
decisions, a question has arisen regarding the authority of state and 
local agencies to conduct investigations under laws that HUD has 
certified as being substantially equivalent to the federal Fair Housing 
Act.
    It is HUD's position that these cases do not affect the authority 
of state and local agencies to enforce laws that HUD has certified as 
substantially equivalent. In reaching its decision in Clearing House v. 
Spitzer, the Court took notice of the fact that the New York Attorney 
General was not the entity authorized to bring actions under the 
state's certified law. The Court noted, however, that the federal Fair 
Housing Act ``establishes several means of enforcing these provisions 
and the other anti-discrimination provisions in the Act, including 
administrative enforcement by the U.S. Secretary of Housing and Urban 
Development; administrative enforcement by certified state and local 
agencies; private causes of action by aggrieved persons; and civil 
enforcement by the U.S. Attorney General where that federal official 
discerns a `pattern and practice' of violations.'' Id. at 628 (Emphasis 
added.)
    Therefore, it is HUD's statement of policy that state and local 
fair housing enforcement agencies who are administering fair housing 
laws that HUD has certified as substantially equivalent to the Federal 
Fair Housing Act have the authority to enforce those statutes and 
ordinances against any respondent, including a national bank, within 
their jurisdictions.

    Dated: May 12, 2006.
Karen A. Newton,
Deputy Assistant Secretary for Operations and Management, Fair Housing 
and Equal Opportunity.
[FR Doc. E6-8845 Filed 6-6-06; 8:45 am]
BILLING CODE 4210-67-P