Links in “Equal Credit Opportunity Act (ECOA)”

In a surprise address, a CFPB deputy explained that while the CFPB's focus is on consumer lending, the bureau also has jurisdiction over some aspects of small business lending, such as the Equal Credit Opportunity Act. The CFPB is in the process of organizing itself to implement Section 1071. [11/20/15]

The Equal Credit Opportunity Act makes it unlawful to discriminate against any applicant on the basis of race, color, religion, national origin, sex or marital status, or age. But what if the common bond is based on one of these prohibited bases? This credit union critic thinks that NCUA should not give such credit unions a free pass when it comes to ECOA. [11/17/15]

The CFPB has become aware of institutions discriminating against applicants whose income includes vouchers from Section 8 Housing Choice Voucher Homeownership program, and issues a reminder that such practice is a violation of ECOA. [5/12/15]

An annual report regarding all of the FTC’s actions related to ECOA has been provided to the CFPB. Read the report here. [2/19/15]

The CFPB published its half-year 2015 regulatory agenda in the Federal Register. The more significant regulatory efforts listed include implementing the Dodd-Frank Act's mortgage protections including anticipated revisions and streamlining of key mortgage regulations including HMDA, RESPA, and TILA. The agenda further anticipates revisions to Regulation CC, the Expedited Funds Availability Act, and business lending rules under ECOA. [12/22/14]

Cook County, which includes Chicago, has accused Wells Fargo of predatory lending, the practice of targeting minority borrowers for more costly home loans than their white counterparts. The county is seeking an amount that may exceed $300 million. [12/2/14]

The CFPB ordered Franklin Loan Corporation (18 locations in Southern California and one in Chicago) to pay $730,000 for giving its employees illegal bonuses for steering consumers into loans with higher interest rates and is seeking injunctions to have the company end the practice and provide compensation to the potential 1,400 harmed consumers. [11/14/14]

The United States District Court for the District of Columbia removed support of HUD’s Disparate Impact Rule under the Fair Housing Act (FHA). Although the ruling does not affect ECOA (Regulation B), it potentially weakens the use of the rule which allowed liability under FHA based on a practice’s discriminatory effect even if the practice was not motivated by a discriminatory intent. The ruling emphasizes that FHA "unambiguously prohibits only intentional discrimination." [11/5/14]

U.S. Supreme Court may have its third opportunity to rule on the issue of whether disparate impact claims can be considered part of the Fair Housing Act. Two previous cases were settled before the court could rule. The case could also impact disparate impact claims under the Equal Credit Opportunity Act. [10/3/14]

Recent court cases held in the Sixth Circuit Court of Appeals and the Eighth Circuit Court of Appeals regarding whether or not spousal cosigners are considered applicants have produced contradictory rulings. The intended determination is whether or not spousal cosigners should receive the protection of Reg. B that applicants receive. Although this specific contradiction may result in appeals to the Supreme Court, institutions should understand that they must continue to be cautious in requiring a spousal guarantor or cosigner and that applicants remain entitled to protection by ECOA. [9/4/14]