If an examiner identifies a potential FHAct violation, what should she do?

When an examiner identifies a potential violation of the Fair Housing Act (FHAct), it is crucial to ensure that the findings are handled appropriately. The correct approach is to consult with headquarters (HQ) and refer the matter to the Department of Housing and Urban Development (HUD).

This procedure is essential because HUD is the federal agency responsible for enforcing the Fair Housing Act. By directing the findings to HUD, the examiner ensures that the issue is addressed by the appropriate authority that possesses the expertise and jurisdiction over fair housing violations. This pathway allows for a thorough investigation and appropriate corrective actions to take place.

Other choices do not provide the correct process for handling FHAct violations. For instance, citing the violation directly in a report or writing a Mortgage Resolution Analysis (MRA) without consulting the appropriate authorities could undermine the integrity of the examination and might not ensure that the violation is effectively addressed. Similarly, referring to entities like the Government-Sponsored Enterprises (GSEs) or the Office of the Comptroller of the Currency (OCC) would be misaligned, as these organizations do not have the jurisdiction over FHAct violations, thus underlining the importance of following the correct referral process to HUD.