Making Sure We're Fair
Chase's goal is to promote equal access to all credit products and services. Chase has an extensive fair lending program designed to ensure that every applicant receives fair and equal treatment. Our commitment to fair lending is reflected in our fair lending policy statement, our fair lending program, our outreach initiatives, and our community programs. We are always seeking to do more.
Chase's Fair Lending Policy Statement
Our fair lending program begins with our Fair Lending Policy Statement, approved by Chase's Board of Directors in 2007:
JPMorgan Chase & Co. (JPMorgan Chase) is committed to treating all individuals fairly and equitably in the conduct of its lending businesses in all jurisdictions where it conducts business. This commitment is part of our fundamental mission of providing quality financial services to existing and prospective customers in accordance with all applicable laws. In the United States, this principle is embodied in fair lending laws such as the Equal Credit Opportunity Act, the Fair Housing Act, and applicable state laws. These laws require the equitable treatment of all credit applicants, without regard to race, sex, sexual orientation, color, national origin, religion, age, marital status, disability or other prohibited basis. Denying any person equal access to basic economic opportunities, such as home ownership or credit, is morally repugnant, and has no place in our company and will not be tolerated.
Only through the efforts of all of us at JPMorgan Chase can we ensure that every applicant for credit receives fair and equitable treatment and that we have helped each member of the communities JPMorgan Chase serves reach his or her fullest potential.
Chase educates its employees about fair lending in several ways:
- Training new employees on fair lending laws and regulations
- Training underwriters and other customer-facing personnel, and business partners, periodically on fair lending laws and regulations
- Distributing bi-annually a fair lending brochure to every employee in Chase Home Lending that contains extensive background on fair lending rules and government regulatory agencies. The brochure can be found here »
Monitoring the Loan Approval Process
Chase takes many steps to ensure applicants are treated fairly in the loan approval process, including:
- Conducting a fair lending review of all credit policies annually
- Reviewing all declined first mortgage applications by a more senior underwriter
- Reviewing targeted files of approved and declined applications by an independent team of fair lending underwriters to ensure consistency in the credit decision; if an application was inappropriately declined, an offer of credit is made
Fair Pricing Initiatives
Chase also has a number of initiatives to ensure that loans are priced fairly, including:
- Testing loans to ensure that fees and pricing do not exceed HOEPA thresholds
- Monitoring loan pricing for compliance with fair lending laws and providing counseling and other sanctions when needed
Company Oversight of Fair LendingWithin Chase, each production channel has regular fair lending meetings with senior executives with oversight responsibilities, including Chase's Corporate Fair Lending Officer. In addition, Home Lending has its own weekly fair lending team meeting to discuss the status and cause of any fair lending complaints, progress against the fair lending plan, fair lending training efforts, and data trends and analysis.