WASHINGTON--With the CFPB finalizing and updating the Equal Credit Opportunity Act (ECOA) last month, America’s Credit Unions has a new Final Rule Summary available analyzing its impact on credit unions.
The rule updates ECOA and its implementing regulation, Regulation B.
Specifically, it amends provisions related to disparate impact, discouragement of applicants or prospective applicants, and conditions under which a creditor may offer special-purpose credit programs under Regulation B.
The rule is effective starting July 21 and:
- Removes disparate-impact (effects-test) language from Regulation B
- Narrows the discouragement provision to “oral or written statements”
- Clarifies that discouragement covers only statements directed at applicants or prospective applicants
- Clarifies that the notion encouraging one group does not, by itself, constitute discouragement of non-recipient
- Revises the discouragement knowledge standard so that a violation occurs only when a creditor knows a statement would communicate discriminatory outcomes
The Final Rule Summary, as well as Regulatory Comment alerts on current proposals, are available on the advocacy section of America’s Credit Unions’ website.