On March 9, 2021 the Consumer Financial Protection Bureau (CFPB) published an interpretative rule entitled Equal Credit Opportunity (Regulation B); Discrimination on the Bases of Sexual Orientation and Gender Identity. The interpretative rule:
- Clarifies that, with respect to any aspect of a credit transaction, the prohibition against sex discrimination in the Equal Credit Opportunity Act (ECOA) and Regulation B, which implements ECOA, encompasses sexual orientation discrimination and gender identity discrimination, including discrimination based on actual or perceived nonconformity with sex-based or gender-based stereotypes and discrimination based on an applicant’s associations.
- Will be effective upon publication in the Federal Register.
One month ago, on February 11, 2021, the U.S. Department of Housing and Urban Development took similar action by issuing a memorandum titled Implementation of Executive Order 13988 on the Enforcement of the Fair Housing Act. At that time, Compliance Resource predicted that the CFPB would soon take similar action.
All creditors must take immediate action to fully implement the provisions of the interpretative rule. Compliance Resource is producing a two-hour webinar entitled Discrimination Based on Gender Identity or Sexual Orientation on March 30, 2021.