42 U.S.C. § 3614–1
Incentives for self-testing and self-correction (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))
Operative Text
A report or result of a self-test (as that term is defined by regulation of the Secretary) shall be considered to be privileged under paragraph (2) if any person— conducts, or authorizes an independent third party to conduct, a self-test of any aspect of a residential real estate related lending transaction of that person, or any part of that transaction, in order to determine the level or effectiveness of compliance with this subchapter by that person; and has identified any possible violation of this subchapter by that person and has taken, or is taking, appropriate corrective action to address any such possible violation. If a person meets the conditions specified in subparagraphs (A) and (B) of paragraph (1) with respect to a self-test described in that paragraph, any report or results of that self-test— shall be privileged; and may not be obtained or used by any applicant, department, or agency in any— proceeding or civil action in which one or more violations of this subchapter are alleged; or examination or investigation relating to compliance with this subchapter. No provision of this section may be construed to prevent an aggrieved person, complainant, department, or agency from obtaining or using a report or results of any self-test in any proceeding or civil action in which a violation of this subchapter is alleged, or in any examination or investigation of compliance with this subchapter if— the person to whom the self-test relates or any person with lawful access to the report or the results— voluntarily releases or discloses all, or any part of, the report or results to the aggrieved person, complainant, department, or agency, or to the general public; or refers to or describes the report or results as a defense to charges of violations of this subchapter against the person to whom the self-test relates; or the report or results are sought in conjunction with an adjudication or admission of a violation of this subchapter for the sole purpose of determining an appropriate penalty or remedy. Any report or results of a self-test that are disclosed for the purpose specified in paragraph (1)(B)— shall be used only for the particular proceeding in which the adjudication or admission referred to in paragraph (1)(B) is made; and may not be used in any other action or proceeding. An aggrieved person, complainant, department, or agency that challenges a privilege asserted under this section may seek a determination of the existence and application of that privilege in— a court of competent jurisdiction; or an administrative law proceeding with appropriate jurisdiction.
Under 42 U.S.C. § 3614–1, lenders and other covered entities that voluntarily test their own fair lending compliance—and then take corrective action when they find potential problems—can shield those self-test reports from being used against them in enforcement proceedings or civil actions. The privilege is not absolute: it evaporates if the entity voluntarily discloses the results, uses them as a defense, or if the results are sought solely to determine a penalty after a violation has already been adjudicated or admitted. Parties who dispute whether the privilege applies may seek a ruling from a court or an administrative law tribunal with appropriate jurisdiction.
Plain English — not legal advice.
Residential mortgage lenders and real estate-related lending entities operating under 42 U.S.C. § 3614–1 generally maintain the self-test privilege by keeping reports confidential, refraining from voluntarily disclosing results to outside parties, and avoiding any use of those results as a shield in litigation. Compliant operators typically document that corrective action was identified and initiated before any external proceeding begins, since both conditions—conducting the test and addressing potential violations—must be satisfied for the privilege to attach. Careful records management is central to preserving the protection this provision offers.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
If you believe a lender has engaged in fair lending violations covered by 42 U.S.C. § 3614–1, it is worth knowing that a lender's internal self-test results are not automatically beyond reach—the privilege can be lost if the lender disclosed those results, used them as a defense, or if a violation has already been admitted or adjudicated and the results are relevant only to the remedy. Tenants and loan applicants who feel aggrieved can raise a challenge to an improperly claimed privilege before a court of competent jurisdiction or an administrative law proceeding. Tenant-rights organizations and fair housing agencies can help explain what enforcement paths—such as filing a complaint with HUD—may be available in situations involving potential fair lending violations.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.