The Consumer Financial Protection Bureau’s proposed rule under Regulation B runs counter to Congress’s intent when it passed the Equal Credit Opportunity Act. By removing disparate impact liability, severely narrowing the definition of discouragement, and over-regulating special purpose credit programs, the propose rule would represent a major step backwards in our civil rights regulatory framework. The factual record does not support such a dramatic revision.
With a racial homeownership gap as wide as it was in 1960 before the Fair Housing Act was passed, and with women and immigrants facing significant structural barriers in the credit marketplace, the regulations currently in place to implement ECOA are still very much needed. The CFPB’s proposed rule must be withdrawn in its entirety.
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