MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN
THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AND
THE FEDERAL HOUSING FINANCE AGENCY
REGARDING FAIR HOUSING AND FAIR LENDING COORDINATION

1. Purpose
a. The U.S. Department of Housing and Urban Development (HUD) and
the Federal Housing Finance Agency (FHFA) (collectively, the Agencies) set forth
this Memorandum of Understanding (MOU) to enhance effective and efficient
enforcement of the Fair Housing Act and oversight of the Federal National
Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage
Corporation (Freddie Mac) (collectively, the Enterprises).
b. This MOU between HUD and FHF A promotes interagency
consultation and coordination regarding the regulated entities, prevents duplication
of Federal efforts, enhances oversight of the regulated entities, and supports
enforcement of the Fair Housing Act.
11. Background
a. The Agencies have statutory responsibilities with respect to Enterprise
fair lending compliance.
HUD is responsible for enforcing the Fair Housing Act, 42 U.S.C. §§ 3601-3619,
and has implemented regulations for section 4545 of the Federal Housing
Enterprises Safety and Soundness Act, 12 U.S.C. §§ 4501-4642 (Safety and
· Soundness Act). The Safety and Soundness Act authorizes HUD to "review and
comment on the underwriting and appraisal guidelines" of the Enterprises "to
ensure that such guidelines are consistent with the Fair Housing Act and [section
4545 of the Safety and Soundness Act]." 12 U.S.C. § 4545(6). The Fair Housing
Act also authorizes HUD to enforce the Fair Housing Act against entities,
including the Enterprises, following receipt of a private complaint or after opening
an investigation under a HUD Secretary-initiated investigation or complaint.
FHFA is the primary regulator for the Enterprises and the Federal Home Loari
Banks (regulated entities). 12 U.S.C. §§ 4501-4642. FHFA has broad statutory
authority to supervise the regulated entities, including authority to monitor and
gather information and conduct supervisory examinations, and enforce compliance
with applicable law. 12 U.S.C. §§ 4511; 4514; 4517; and 4631. FHFA engages in
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comprehensive fair lending oversight to ensure Enterprise compliance with the Fair
Housing Act, ECOA, and the fair lending provisions of the Safety and Soundness
Act.
b. Section 3608(d) of the Fair Housing Act requires Federal agencies
having regulatory or supervisory authority over financial institutions to "cooperate
with the [HUD] Secretary to further [the] ... purposes" of the Fair Housing Act.
Executive Order 12892 requires HUD to "develop memoranda of understanding ...
to provide for consultation and coordination of Federal efforts to further fair
housing ... including coordination of the investigation of complaints." The Fair
Housing Act's implementing regulation at 24 C.F.R. § 103.220 permits HUD to
"seek the cooperation and utilize the services of Federal ... agencies, including
any agency having regulatory or supervisory authority over financial institutions."
111. Consultation and Coordination
a. When appropriate, HUD and FHFA may meet and share information
concerning current and contemplated fair lending investigations, examinations or
compliance reviews, ongoing monitoring of the Enterprises, and other fair lending
activity, including but not limited to opportunities for HUD and FHFA to
administer their �espective programs and activities relating to housing and urban
development in a manner to further the purposes of the Fair Housing Act. The
meetings will provide an opportunity for the Agencies to support each other's fair
lending activities and consider the possibility of coordinated actions where there
are common issues or parties. In these discussions, HUD and FHFA will adhere to
its respective agency's information sharing requirements, confidentiality
requirements and privileges, and other information management requirements.
The Agencies may establish a regular schedule for consultation and coordination
meetings.
b. HUD's Director of the Office of Systemic Investigations in the Office
of Fair Housing and Equal Opportunity or designee is HUD's liaison. FHFA's
Supervisory Policy Analyst of the Office of Fair Lending Oversight in the Division
of Housing Mission and Goals or designee is FHFA's liaison. Communication
under this MOU will be through the liaisons unless mutually agreed upon by the
agencies. Each Agency will be responsible for designating additional attendees of
the consultation and coordination meetings and other activities under this MOU.
Each Agency will determine the role of legal counsel in activities under this MOU.
c. The Agencies may consult on any fair lending matter related to the
Enterprises, including with regard to investigative approaches and activities to
further fair lending. Additionally, the Agencies may, each at their own discretion,

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consult on any matter regarding potential violations of fair lending law and
potential investigations, examinations, or reviews of an Enterprise's activity.
Consultation on potential violations of fair lending law is not limited to the
Enterprises. The Agencies will notify each other of relevant fair lending
complaints or fair lending investigations. This provision does not limit an
Agency's discretion as appropriate to provide or withhold information relevant to
possible violations of the Fair Housing Act to the other Agency.
d. Each Agency will strive to provide the other Agency advance notice
before opening any fair lending investigation, examination, or review of an
Enterprise, including information on the scope. Upon any such notice from HUD
related to a fair lending review or investigation, including a review of the
underwriting or appraisal guidelines of an Enterprise pursuant to 12 U.S.C. § 4545,
FHFA may facilitate HUD's review, as appropriate. Fl--IFA shall make best efforts
to provide HUD an opportunity to comment on any significant adverse
examination finding of a violation or enforcement action related to the Enterprises'
appraisal or underwriting guidelines that may impact HUD' s enforcement of the
Fair Housing Act or section 4545 of the Safety and Soundness Act before
undertaking final action.
e. . An Agency will strive to provide the other Agency advance notice and
an opportunity to comment on any significant fair housing or lending regulations
or guidance that relate to or significantly impact Enterprise compliance with fair
lending requirements.
f. This MOU promotes agency coordination but does not restrict or limit
in any way either Agency's authority to act under its authorities.

1v. Complaints
a. HUD will provide Fl--IFA a periodic digest of information on
complaints accepted for filing under the Fair Housing Act against a regulated
entity. Upon request, HUD will provide Fl--IFA a copy of the complaint.
b. FHFA will provide HUD a periodic digest of information on
consumer complaints submitted to FHFA or a regulated entity that may constitute a
violation of the Fair Housing Act. Upon request, Fl--IFA will provide HUD a copy
of the consumer complaint.
c. HUD may request to utilize the services of Fl--IFA in addressing a Fair
Housing Act complaint pursuant to 24 C.F.R. § 103.220 to the extent this complies
with Section XIV below. Any transfer of resources between Agencies must be
confirmed by an appropriate funding agreement as required by Section XIV.

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 d. FHFA may, from time to time, request information from HUD
regarding Fair Housing Act complaints related to counterparties of its regulated
entities, and complaints involving properties that serve as collateral for mortgage­
related transactions involving its regulated entities. In its discretion, HUD may
share information regarding such complaints with FHFA.
v. Coordination of Examination and Review Activities
a. When appropriate, HUD and FHFA may coordinate and share
information on their respective fair lending examination and review activities of
the Enterprises related to underwriting and appraisal guidelines ("coordinated
reviews"). This MOU does not require either agency to engage in coordinated
reviews of the Enterprises and is not intended to interfere with an Agency's
authority, discretion, or internal operations.
b. Where both HUD and FHFA determine that they will take actions
with respect to a common set of issues, facts, respondents, or other matters under
their respective authorities, each will strive to coordinate its action(s) in a manner
that is consistent and complementary and to determine whether continued
information sharing and coordination of the Agencies' respective actions is
necessary and appropriate. If the Agencies disagree about any aspect of the
coordinated reviews, at each Agency's discretion, they may cease coordination and
proceed independently.
c. FHFA considers any information it obtains as part of coordinated
reviews, including information obtained through and analysis completed by HUD,
to be confidential supervisory information subject to 12 C.F.R. part 1214. No
privileges are waived by sharing of information.
v1. Referrals to FHFA
a. In making a referral under 24 C.F.R. § 81.47(a), HUD will provide
FHFA with information explaining the basis for the referral and any relevant
documents after communicating to an Enterprise that it may be violating 12 U.S.C.
§ 4545, 24 C.F.R. §§ 81.41-.47, or the Fair Housing Act. HUD shall also provide
its views on violations or potential violations and possible corrective action.
b. With respect to complaints and other matters referred by HUD to
FHFA, FHFA, at its sole discretion, may use its regulatory, supervisory, and
administrative enforcement authority to address violations or potential violations in
accordance with applicable FHFA enforcement authority and policy. FHFA may
also determine, at its sole discretion, to take action as conservator to resolve
identified issues during the term of any conservatorship of an Enterprise.
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 c. FHFA will consult with HUD throughout the process of
contemplating or taking action following a referral under 24 C.F.R. § 81.47(a) and
notify HUD of final actions it has determined to take. This MOU does not modify
any authority that HUD has to take action under its own authorities with respect to
information supporting a referral to FHFA.
vu. Information Sharing and Confidentiality
a. The agency providing or sharing information under this MOU
("Providing Agency") may request that certain information regardless of written,
verbal, or electronic format be treated as confidential ("Confidential Information")
and protected from disclosure by the agency receiving the information ("Receiving
Agency") under the terms of this MOU.
b. Pursuant to 32 C.F.R. Part 2002, FHFA has implemented a Controlled
Unclassified Information (CUI) Program. All FHFA Non-Public Information as
defined in 12 C.F.R. § 1214.1 is CUI, and all FHFA CUI shall be considered
Confidential Information for the purposes of this MOU. Confidential Information
may also include Confidential Supervisory Information as defined in 12 C.F.R.
Part 1214.
c. In order to ensure that certain information provided by the Providing
Agency is accorded confidential treatment, the Providing Agency shall clearly
designate those portions of the information it wishes to be treated as confidential
with a suitable form of notice such as "Confidential Treatment Requested by [the
Providing Agency]." FHFA Non-Public Information will generally be marked
"CONTROLLED" and FHFA information containing personally identifiable
information (PII) will generally be marked "CONTROLLED//SP-PRVCY," in
accordance with FHPA's CUI Program. Information marked as such shall be
treated as Confidential Information.
d. Nothing in this MOU prevents the Agencies from entering into other
agreements establishing separate terms for exchange of certain information which
the Agencies do not wish to be exchanged pursuant to this MOU.
e. All information provided pursuant to this MOU belongs to, and shall
remain the property of, the Providing Agency. To the extent permitted by
applicable law, the Receiving Agency will maintain the confidentiality of the
Confidential Information and will not voluntarily disclose such information to any
third party without the prior written consent of the Providing Agency. In providing
Confidential Information to the Receiving Agency, the Providing Agency may
designate purposes for which it authorizes its lawful disclosure.
f. Information shall no longer be regarded as confidential if it:
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 • is or becomes publicly available, unless the public availability of
the information was the result of an unauthorized disclosure;
• is or becomes known to the Receiving Agency independent of its
disclosures to the Receiving Agency by the Providing Agency and
does not otherwise qualify for confidential treatment;
• is provided to any other non-governmental party free from any
obligation to maintain its confidentiality;
• is subsequently provided to the Receiving Agency free from any
obligation to maintain its confidentiality; or
• was previously provided to the Receiving Agency free from any
obligation to maintain its confidentiality.
g. Each agency agrees to establish and maintain such safeguards as are
necessary and appropriate to protect the confidentiality of the Confidential
Information provided pursuant to this MOU including:
• restricting access to the Confidential Information to only those of
its officers, employees, or agents (including outside counsel,
accountants, and consultants) who have a bona fide need for such
information in carrying out the supervisory, regulatory and other
responsibilities of the agency;
• informing those of its officers, employees or agents, who are
provided access to the Confidential Information of their
responsibilities under this MOU; and,
• establishing appropriate physical safeguards for maintaining the
Confidential Information.
h. Unless prohibited by law or otherwise provided in this MOU, the
Receiving Agency shall:
• promptly notify the Providing Agency in writing of any legally
enforceable demand or request for the Confidential Information
received by the Receiving Agency (including but not limited to
subpoena, court order, or Freedom of Information Act request or
Privacy Act request) to afford the Providing Agency a reasonable
opportunity to respond to the demand and the Receiving Agency
sufficient time to assert such legal exemptions or privileges on
behalf of the Providing Agency as the Providing Agency may
reasonably assert;

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 • support the application of the Providing Agency to intervene in any
action concerning the disclosure of the Confidential Information in
order to allow the Providing Agency the opportunity to assert any
claims of confidentiality with respect to the Confidential
Information;

• not grant any other demand or request for the Confidential

Information or furnish it to any other third party, or otherwise
make public the information, without giving the Providing Agency
prior written notice and ten (10) business days to object to the
disclosure; and,

• adhere to the requirements of federal law governing disclosure of

confidential information by a government agency, including but
not limited to the Privacy Act, 5 U.S.C. § 552a, as amended; the
Freedom of Information Act, 5 U.S.C. § 552; and the Trade Secrets
Act, 18 U.S.C. § 1905.

1.. Nothing in this MOU shall prevent the Agencies from complying with
a court order or, if compliance is deemed compulsory, a request or demand from a
duly authorized committee of the United States Senate or House of
Representatives.
j. Privileges. The Agencies agree that sharing of the Confidential
Information pursuant to this MOU will not constitute public disclosure and in no
way constitutes a waiver of confidentiality or of any applicable privileges,
including the examination privilege, or waives or alters any provisions of any
applicable laws governing the confidentiality or use of the Confidential
Information. The Agencies expressly reserve all the evidentiary privileges and
immunities applicable to the Confidential Information.
VIII. Contributions of the Parties
a. The Agencies to this MOU will abide by the terms and conditions of
this MOU when sharing data and information, including ensuring compliance with
security protocols and relevant statutes and regulations, including the Privacy Act.
1x. Data Security and Safeguards
a. Access, Storage and Disposition of Data
The Agencies agree to provide adequate security arrangements for access to,
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storage, and disposition of all input files, linked files, extracts, and printed
listings/outputs, to prevent unauthorized use or disclosure of these data.

In case of any conflicting data security or safeguard updates and until written
notification concerning data security and safeguards of data can be mutually agreed
upon by the Agencies, each agency will adhere to the requirements of the Federal
Information Security Management Act, as amended, and Office of Management
and Budget guidelines to fully protect the confidentiality of each agency's data.

b. Authorized Supervision and Control

The Agencies agree that all electronic records and printouts derived from shared
information will remain under the immediate supervision and control of authorized
personnel in a manner that will protect the confidentiality of the information and
records.

c. Records Transport
The Agencies shall ensure that data collection and sharing shall comply with the
Privacy Act and shall maintain reasonable and appropriate administrative,
technical, and physical safeguards to ensure the integrity and confidentiality of the
information and to protect against security threats, or unauthorized uses or
disclosures of the information. Data shall be used only for the purposes of this
MOU as set forth in sections I and II.

d. Ownership of Information/Data
Title to and ownership of all HUD property transferred under this MOU will reside
with HUD. Title to and ownership of all FHFA property transferred under this
MOU will reside with FHFA.

e. Data Custodians
The Agencies will each appoint a data custodian to be responsible for safeguarding
all computer media containing identifiable data and for data files, and for ensuring
that all terms and conditions of this MOU are met. If, for any reason, either agency
finds it necessary to change data custodians, it will give written notification to the
other agency within 30 days of the change, including the effective date of such
change. In addition, the agency will be required to: (1) make a complete
accounting of all records containing Confidential Information (see section VII) in
writing; and (2) provide this accounting to the new data custodian.

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 HUD Data Custodians FHFA Data Custodian

Name: Patrina Munson Name: James Wylie

Division: Director, Office of Information Division: Office of Fair Lending
Services Oversight,
and Communications, Division of Housing Mission and
Fair Housing and Equal Opportunity Goals
Agency: Department of Housing and Agency: Federal Housing Finance
Urban Development Agency
451 7 th St., S.W., 400 7 th St., s.w.
Washington, D.C. 20410 Washington, D.C. 20219
Phone: (301) 928-0323 Phone: (202) 649-3209

f. Reporting Attempts to Gain Inappropriate Access

All authorized employees or agents to the Agencies in this MOU are instructed to
notify their supervisors of any attempts to gain inappropriate access to information
or records derived from these data, whether by bribery, coercion, or other means.
Each Agency will immediately report any such instance to the Agency's Data
Custodian and Project Officer, who will, in tum, immediately report it to the
respective Agency's Chief Information Security Officer and Privacy Officer.

g. Unauthorized Disclosure

1. The Agencies acknowledge that an unauthorized release or

disclosure of information provided under this MOU may violate
the terms of the Privacy Act and other applicable laws or
regulations.

2. Any individual who makes an unauthorized release or

disclosure of information provided under this MOU may be
subject to civil and criminal penalties under the Privacy Act and
other applicable laws or regulations.

h. Restrictions on Release and Use of Information and Data

The Agencies will use shared data only for the purposes set forth in this MOU or
for other purposes that the Agencies may agree to in writing.

1. Return, Destruction, or Retention of Data

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 1. When the Agencies have no further need of the files or
derivatives of such files used to complete their respective
responsibilities under this MOU, they must either return the
files to the originating Agency's data custodians or destroy
them.

2. If FHFA or HUD determine that they have a further need for

any file(s) provided by the other Party, they will consult with
the other Agency to decide whether any such files should be
retained. Any files that the Agencies agree to retain will be
kept at FHFA or HUD.
x. Reporting Theft or Loss Of Personally Identifiable Information
a. If any of the Parties to this MOU experience a breach, theft, loss or
potential loss of PU or security incident related to the HUD data or information or
the FHFA data or information, the agency will notify the United States Computer
. Emergency Readiness Team within one (1) hour of being identified by the
agency's top-level Computer Security Incident Response Team, Security
Operations Center, or information technology department, as required by the US­
CERT Federal Incident Notification Guidelines. The data custodian for the
breached agency must notify all other agency data·custodians within one (1) hour
of discovery of the breach.

b. If within one (1) hour, the data custodian has been unable to speak
with the other agency data custodian named in this MOU or if the breach occurs
outside of normal business hours, the data custodian will contact:

HUD System Computer Incident Response Team; CIRT@hud.!!ov

FHFA Information Security Team; OTIMSecurit\ [email protected]"ov. In

addition, please also contact: [email protected]'.1, and Privacv@FHFA.�ov.

c. FHFA or HUD will also implement its respective agency's policies

and procedures for responding to the breach of PII in accordance with 0MB
Directive, 0MB M-17-12, "Preparing for and Responding to a Breach of
Personally Identifiable Information" (January 3, 2017). The agency that
experienced a breach, theft, loss, or potential loss of PII must also provide the data
custodians a detailed report of the incident as described in 0MB M-17-12.
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x1. Duration of MOU
a. This MOU will continue from the date of execution through
December 31, 2025. At that time, the Agencies may allow this MOU to expire,
renew this MOU for subsequent years or develop a new MOU. All requests to
extend the duration of this MOU will be in writing and submitted to the individuals
listed in section III.b. of this MOU or their successors.

b. Notwithstanding the language above, all provisions in section IX will

continue for all information that the Agencies provide each other under this MOU
for as long as the Agencies retain such information.
XII. Amendment and Termination
a. This MOU may be amended where approved in writing and signed by
both Agencies. Either Agency may terminate this MOU at any time by providing
30 calendar days' written notice to the other Agency. Either Agency may
unilaterally terminate this MOU without advance notice to the other Agency upon
a breach of the security provisions or a loss of PII as set forth in section X
(Reporting Theft or Loss of PII).
XIII. Expenses of Each Party
a. Each party to this MOU will bear its own expenses in connection with
the preparation, negotiation, and execution of this MOU, and neither Agency shall
be liable to the other agency for such expenses. Each Agency is expected to
mutually benefit from this data sharing.
xiv. No Financial Obligation
a. Each of the Agencies will act as an independent Party with respect to
the performance of its duties under this MOU. This MOU does not obligate and
will not result in &n exchange of funds, personnel, property, services, or any kind
of financial commitment. It will not result in a transfer of resources between the
Agencies. Any future transfer of funds or obligation to undertake certain work
must be confirmed by an appropriate funding agreement executed by authorized
officials from the agencies that are signatories to this MOU. This MOU does not
give any third party any benefit, legal, or equitable right, remedy or claim under
this MOU.

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xv. Other Limitations
a. The Agencies agree that no information provided or discussions held
pursuant to this MOU constitute a sharing or exercise of governmental regulatory
authorities relating to institutions that the Agencies supervise.
b. The Agencies will consult in advance the issuance of all publicity
statements with regards to this MOU.
c. Nothing in this MOU is intended to, or shall be construed to, affect,
modify, or imply any conclusion regarding the jurisdiction of authority of either
HUD or FHFA. Nor does this MOU affect the rights, powers or obligations of
HUD or FHFA under existing law concerning the scope of the respective
jurisdiction of each to supervise, examine, regulate, or bring administrative or
judicial enforcement proceedings against the institutions regulated by them.
Nothing in this MOU shall be construed to prevent HUD or FHFA from taking
supervisory, examination, regulatory, enforcement or other action that each may
deem necessary or appropriate to carry out its responsibilities as permitted by
applicable law.
d. This MOU does not require an Agency to create or maintain Non-
Public Information or to provide or share Non-Public Information with the other
Party, and all sharing of Non-Public Information pursuant to this MOU shall be at
the sole discretion of each Agency and in keeping with any disclosure regulation or
policy to which such Non-Public Information may be subject as described herein
including, but not limited to the Privacy Act.
xvi. Authorizing Signatures and Dates
Each signatory below warrants and represents that he/she has the competent
authority on behalf of his/her respective agency to enter into the obligations and
agree to the terms set forth in this
Memorandum of Understanding between FHFA and HUD regarding Fair Lending
Coordination.

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For the U.S. Department of Housing and Urban Development

� /cJ-
� /'--/,2-�-4
Marcia L. Fud� � Date
Secretary
Department of Housing and Urban Development

For the Federal Housing Finance Agency

8/ 1:2-/.2.0.;;L I
Sandra . Thompson D�e
Acting Director
Federal Housing Finance Agency

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