Alert May 01, 2012

CFPB Issues Guidance on Compliance with Fair Lending Requirements of ECOA

The CFPB issued a guidance bulletin on compliance with the fair lending requirements of the Equal Credit Opportunity Act and its implementing regulation, Regulation B.  The CFPB stated that it will continue to use the doctrine of disparate impact in its supervisory and enforcement activities, and concurred with the Interagency Task Force on Fair Lending’s 1994 Policy Statement on Discrimination in Lending, which provided three methods for establishing lending discrimination under ECOA: (1) overt evidence of discrimination; (2) evidence of disparate treatment; and (3) evidence of disparate impact.

The CFPB also released a Credit Discrimination Brochure which provides consumers with tips and warning signs to identify credit discrimination. Click here and here for related press releases, here for the bulletin, here for the interagency policy statement, here for the brochure, and here for Director Richard Cordray’s recent speech on fair lending.