FDIC Seeks Feedback on Third-Party Guidance

The Federal Deposit Insurance Corporation seeks feedback on the guidance it gives to its member banks that work with outside partners to originate loans, including vendors involved in bank partnerships. On July 29, the Federal Deposit Insurance Corporation requested comments on its proposed third-party lending guidance that outlines the risks that may be associated with third-party lending as well as the expectations for a risk-management program, supervisory considerations, and examination procedures related to third-party lending. Under the proposed guidance, third-party lending is an arrangement in which a bank relies on an outside source to perform a significant aspect of the lending process, such as originating loans for third parties, originating loans through third parties or jointly with third parties, and originating loans using platforms developed by third parties. The draft guidance supplements and expands on previously issued guidance and would apply to all FDIC-supervised institutions that engage in third-party lending programs. Comments on the guidance will be accepted until September 12, 2016.

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