What can credit unions do under self-testing regarding the Fair Housing Act?

Credit unions can conduct tests to identify compliance levels as part of their self-testing under the Fair Housing Act. This self-testing process allows credit unions to evaluate their practices against the guidelines established by the law, ensuring they are not engaging in discriminatory practices. By proactively testing their compliance, credit unions can identify areas for improvement and make necessary adjustments to their lending policies or practices, which ultimately helps in fostering fair housing and equal opportunity for all potential borrowers.

This practice reflects a commitment to fair lending and aids in maintaining compliance with legal and regulatory standards. Engaging in self-testing demonstrates due diligence and can also serve as a defense against potential fair housing claims, as it involves taking steps to identify and remedy any issues before they escalate into formal complaints.