IBA Compliance Connection

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We distribute a fee schedule for deposit accounts, and some at the bank think this fee schedule needs to include an “Equal Housing Lender” statement. We’re also wondering whether this would be required for privacy notices and disclosures — both of which we provide to both deposit and loan customers. Are these documents required to have the “Equal Housing Lender” statement? How about the “Member FDIC” disclosure?

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We do not believe that these documents need to include the “Equal Housing Lender” statement, nor do they need to include the “Member FDIC” disclosure.

The Federal Reserve’s Equal Housing Lender advertising requirements apply to “any form of advertising of any loan for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling.” Consequently, the “Equal Housing Lender” statement is not required on non-advertisements, such as fee schedules for deposit accounts, privacy notices or account statements. However, we recommend monitoring your account statements, which sometimes may incorporate advertisements for dwelling-related loans, in which case the “Equal Housing Lender” statement should be included with the advertisements.

The FDIC’s official advertising statements also apply only to “advertisements,” defined as commercial messages “designed to attract public attention or patronage to a product or business.” Again, none of the documents mentioned in your question are advertisements, and consequently the “Member FDIC” statement is not required. However, the “Member FDIC” statement should be included if your account statements incorporate an advertisement for a deposit-related product (but note that use of the “Member FDIC” statement is prohibited on non-deposit product advertisements).

For resources related to our guidance, please see:

  • Federal Reserve, Board Order on Fair Housing Advertising and Poster Requirements, 54 Fed. Reg. 11567 (March 20, 1989) (“(a) A state member bank that directly or through third parties engages in any form of advertising of any loan for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling (as defined in section 3 of this order) or any loan secured by a dwelling shall prominently indicate in such advertisement, in a manner appropriate to the advertising medium and format utilized, that the bank makes such loans without regard to race, color, religion, sex, or national origin, handicap, or familial status (having children under the age of 18).”)
  • FDIC, Official advertising statement requirements, 12 CFR 328.3(c) (“Except as provided in § 328.3(d), each insured depository institution shall include the official advertising statement prescribed in § 328.3(b) in all advertisements that either promote deposit products and services or promote non-specific banking products and services offered by the institution. . . .”)
  • FDIC, Official advertising statement requirements, 12 CFR 328.3(a) (“The term ‘advertisement,’ as used in this part, shall mean a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business.”)
  • FDIC, Official advertising statement requirements, 12 CFR 328.3(e) (“Except as provided in § 328.3(e)(4), an insured depository institution shall not include the official advertising statement, or any other statement or symbol which implies or suggests the existence of Federal deposit insurance, in any advertisement relating solely to non-deposit products.”)