# OCC Bulletin 1997-24: Credit Scoring Models: Examination Guidance

Source: https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-1997-24
Last updated: Aug 26, 2026

OCC Bulletin 1997-24, 'Credit Scoring Models: Examination Guidance,' issued May 20, 1997, was the OCC's first supervisory statement on algorithmic credit decisions. It warned that credit scoring models, while valuable portfolio and risk-management tools, raised safety-and-soundness and fair-lending concerns when banks used them inconsistently, monitored them poorly, or relied on staff untrained to evaluate model performance. It was rescinded on April 17, 2026 by OCC Bulletin 2026-13.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [OCC](https://www.bankingnewsai.com/ai-regulation/occ) |
| Type | Guidance |
| Status | Superseded |
| Published | May 20, 1997 |
| Effective | May 20, 1997 |
| Applies to | National banks using credit scoring models (scorecards) in lending |
| Official text | https://www.occ.gov/static/rescinded-bulletins/bulletin-1997-24.pdf |

## Key points

- Issued May 20, 1997; accompanied by OCC news release 1997-46 alerting banks to the benefits and risks of credit scoring models.
- Identified concerns including inadequate staff training to monitor model performance, deficient management information systems, and inconsistent application of scoring models (overrides).
- Appendix set out safety-and-soundness and compliance issues, including fair-lending risk from models and variables that could have a disparate impact.
- Expected banks to validate models before use, track performance over time, and document override policies.
- Rescinded by OCC Bulletin 2026-13 on April 17, 2026; credit-scoring models now fall under the revised model risk guidance and fair-lending law (ECOA/Regulation B).

## What changed for banks

It established the principle — nearly thirty years before the AI debate — that an automated underwriting algorithm is subject to validation, monitoring, and fair-lending scrutiny. Its rescission in 2026 was a housekeeping step: modern credit-scoring and ML underwriting models are covered by Bulletin 2026-13, while the fair-lending expectations continue under ECOA and Regulation B.

## Use cases it governs

- [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting)
- [Fair lending & discrimination](https://www.bankingnewsai.com/ai-regulation/by-use-case#fair-lending)
- [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk)

> Superseded by [OCC Bulletin 2026-13](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2026-13).

## FAQ

### Is OCC Bulletin 1997-24 still in effect?

No. It was rescinded on April 17, 2026 by OCC Bulletin 2026-13. Credit scoring models are now governed by the revised interagency model risk management guidance and by fair-lending law.

### What did the 1997 OCC credit scoring bulletin require?

It told national banks to validate credit scoring models, monitor their performance with adequate management information systems, train staff, apply the models consistently, and manage fair-lending risk in the model's variables and use.

## Related documents

- [OCC Bulletin 2026-13](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2026-13) — Model Risk Management: Revised Guidance (Apr 17, 2026)
- [OCC Semiannual Risk Perspective, Spring 2026](https://www.bankingnewsai.com/ai-regulation/documents/occ-semiannual-risk-perspective-spring-2026) — Semiannual Risk Perspective from the National Risk Committee, Spring 2026 (May 7, 2026)
- [Acting Comptroller Hood, 'AI in Financial Services' (Apr 2025)](https://www.bankingnewsai.com/ai-regulation/documents/occ-hood-responsible-ai-speech-2025) — Remarks by Acting Comptroller Rodney E. Hood at the National Fair Housing Alliance's Responsible AI Symposium: 'AI in Financial Services' (Apr 29, 2025)
- [OCC Bulletin 2023-17](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2023-17) — Third-Party Relationships: Interagency Guidance on Risk Management (Jun 6, 2023)
- [OCC Bulletin 2021-19](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2021-19) — Bank Secrecy Act/Anti-Money Laundering: Interagency Statement on Model Risk Management for Bank Systems Supporting BSA/AML Compliance and Request for Information (Apr 9, 2021)
- [2021 Interagency AI RFI (OCC Bulletin 2021-17)](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2021-17-ai-rfi) — Request for Information and Comment on Financial Institutions' Use of Artificial Intelligence, Including Machine Learning (Mar 31, 2021)
- [OCC Bulletin 2011-12](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2011-12) — Sound Practices for Model Risk Management: Supervisory Guidance on Model Risk Management (Apr 4, 2011)
- [Colorado AG proposed ADMT rules](https://www.bankingnewsai.com/ai-regulation/documents/co-ag-admt-proposed-rules-2026) — Proposed Automated Decision-Making Technology and Conversational AI Service Rules (Notice of Rulemaking Hearing) (Aug 11, 2026)

Last reviewed Aug 26, 2026. Cite the official text (https://www.occ.gov/static/rescinded-bulletins/bulletin-1997-24.pdf) for the rule and this page for the summary and dates.

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