On May 9, 2022, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion to affirm that the Equal Credit Opportunity Act and Regulation B protect not only those actively seeking credit but also those who sought and have received credit. This is not a new position, it is a reaffirmation of long standing law and regulation. The advisory opinion is effective upon publication in the Federal Register, which is expected soon.
Tag: Regulation B
CFPB ISSUES SPANISH LANGUAGE FORMS AND A REMINDER
In late April, the Consumer Financial Protection Bureau (CFPB) issued: Eight Spanish language version of several adverse action sample disclosures; Six Spanish language version of several prepaid account sample disclosures; and A reminder of financial institutions’ obligation to serve the communities where they do business, including communities with limited English proficiency and also encouraged them to use the translations as they work with Spanish-speakers in their community.
CFPB PUBLISHES PROPOSAL FOR SMALL BUSINESS LOAN DATA COLLECTION AND REPORTING
On August 31, 2021, the Consumer Financial Protection Bureau (CFPB) published a 918-page notice of proposed rulemaking (NPRM) to implement Section 1071 of the Dodd-Frank Act. That section amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. Comments on the NPRM will be due no later than 90 days after the date it […]
CFPB WARNS OF FORECLOSURE SURGE AND COMPLIANCE RISK
On April 1, 2021, the CFPB issued Compliance Bulletin 2021-02 warning mortgage services of a pending wave of foreclosures when the pandemic-related federal emergency mortgage protections expire this summer and fall. Since the CARES Act was enacted, 6.9 million borrowers have entered a forbearance program. As of January 2021, more than 2.1 million borrowers in forbearance programs were more than 90 days behind on their mortgage payments (including borrowers who have forborne three or more […]
CFPB ENFORCING BAN ON DISCRIMINATION BASED ON GENDER IDENTITY OR SEXUAL ORIENTATION
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 […]