Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system.
The FDIC insures deposits at the nation’s banks and savings associations, 6,122 as of March 31, 2016. It promotes the safety and
soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no
federal tax dollars—insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center
(877-275-3342 or 703-562-2200). PR-67-2016
August 4, 2016 Media contact:
Barbara Hagenbaugh
(202) 898-6993
bhagenbaugh@fdic.gov
FDIC Extends Comment Period on Third-Party Lending Guidance
The Federal Deposit Insurance Corporation (FDIC) is extending the comment period for
proposed guidance on third-party lending.
Comments on the proposed guidance, which was published on July 29, now must be received
on or before October 27. The 45-day extension was made in response to requests from
interested parties who asked for additional time to consider the proposal.
The proposed third-party lending guidance 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.
Comments should be sent to thirdpartylending@fdic.gov and will be posted on the FDIC's
website at https://www.fdic.gov/regulations/laws/publiccomments/.
###
Attachment:
Examination Guidance for Third-Party Lending
The FDIC insures deposits at the nation’s banks and savings associations, 6,122 as of March 31, 2016. It promotes the safety and
soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no
federal tax dollars—insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center
(877-275-3342 or 703-562-2200). PR-67-2016
August 4, 2016 Media contact:
Barbara Hagenbaugh
(202) 898-6993
bhagenbaugh@fdic.gov
FDIC Extends Comment Period on Third-Party Lending Guidance
The Federal Deposit Insurance Corporation (FDIC) is extending the comment period for
proposed guidance on third-party lending.
Comments on the proposed guidance, which was published on July 29, now must be received
on or before October 27. The 45-day extension was made in response to requests from
interested parties who asked for additional time to consider the proposal.
The proposed third-party lending guidance 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.
Comments should be sent to thirdpartylending@fdic.gov and will be posted on the FDIC's
website at https://www.fdic.gov/regulations/laws/publiccomments/.
###
Attachment:
Examination Guidance for Third-Party Lending
1
Examination Guidance for Third-Party Lending
As of July 29, 2016
Purpose
Third-party lending arrangements may provide institutions with the ability to supplement,
enhance, or expedite lending services for their customers. Engaging in third-party lending
arrangements may also enable institutions to lower costs of delivering credit products and to
achieve strategic or profitability goals. However, these arrangements also present a number of
risks that require effective management. This guidance provides information on third-party
lending activities1 and supplements the FDIC’s Guidance for Managing Third-Party Risk
(“Third-Party Guidance”).
The Third-Party Guidance applies to any of an institution’s third-party arrangements, including
lending. This guidance expands upon the principles in that guidance by setting forth safety and
soundness and consumer compliance measures FDIC-supervised institutions should follow when
lending through a business relationship with a third party.
An institution’s board of directors and senior management are ultimately responsible for
managing activities conducted through third-party relationships, including lending relationships,
and for identifying and controlling the risks arising from such relationships as if the activity were
handled within the institution. The FDIC will evaluate lending activities conducted through
third-party relationships as though the activities were performed by the institution itself. The
institution, its board, and senior managers retain the ultimate responsibility to conduct lending
activities in a safe and sound manner, in accordance with existing supervisory guidance, and in
compliance with applicable laws and regulations.
A listing of applicable guidance, regulations, and laws are cited at the end of this guidance.2
Management should consider the principles addressed in this guidance and ensure that
appropriate procedures are in place, taking into account the type of lending activity, complexity,
volume, and number of third-party lending relationships. Institutions that engage in new or
significant lending activities through third parties will generally receive increased supervisory
attention. Third-party lending arrangements will be considered significant if, for example, they
have a material impact on revenues, expenses, or capital; involve large lending volumes in
relation to the bank’s balance sheet; involve multiple third parties; or present material risk of
consumer harm.
Background
1 For purposes of this guidance, the terms “lending” and “loan” include any credit or financing arrangement, even if
the transaction is not categorized as a loan on the institution’s balance sheet.
2 This is not an all-inclusive list, and depending on the type of product, service or relationship, other guidance,
regulations, or laws may apply.
Examination Guidance for Third-Party Lending
As of July 29, 2016
Purpose
Third-party lending arrangements may provide institutions with the ability to supplement,
enhance, or expedite lending services for their customers. Engaging in third-party lending
arrangements may also enable institutions to lower costs of delivering credit products and to
achieve strategic or profitability goals. However, these arrangements also present a number of
risks that require effective management. This guidance provides information on third-party
lending activities1 and supplements the FDIC’s Guidance for Managing Third-Party Risk
(“Third-Party Guidance”).
The Third-Party Guidance applies to any of an institution’s third-party arrangements, including
lending. This guidance expands upon the principles in that guidance by setting forth safety and
soundness and consumer compliance measures FDIC-supervised institutions should follow when
lending through a business relationship with a third party.
An institution’s board of directors and senior management are ultimately responsible for
managing activities conducted through third-party relationships, including lending relationships,
and for identifying and controlling the risks arising from such relationships as if the activity were
handled within the institution. The FDIC will evaluate lending activities conducted through
third-party relationships as though the activities were performed by the institution itself. The
institution, its board, and senior managers retain the ultimate responsibility to conduct lending
activities in a safe and sound manner, in accordance with existing supervisory guidance, and in
compliance with applicable laws and regulations.
A listing of applicable guidance, regulations, and laws are cited at the end of this guidance.2
Management should consider the principles addressed in this guidance and ensure that
appropriate procedures are in place, taking into account the type of lending activity, complexity,
volume, and number of third-party lending relationships. Institutions that engage in new or
significant lending activities through third parties will generally receive increased supervisory
attention. Third-party lending arrangements will be considered significant if, for example, they
have a material impact on revenues, expenses, or capital; involve large lending volumes in
relation to the bank’s balance sheet; involve multiple third parties; or present material risk of
consumer harm.
Background
1 For purposes of this guidance, the terms “lending” and “loan” include any credit or financing arrangement, even if
the transaction is not categorized as a loan on the institution’s balance sheet.
2 This is not an all-inclusive list, and depending on the type of product, service or relationship, other guidance,
regulations, or laws may apply.