Federal register equal credit opportunity act regulation. The federal trade commission ftc, the nations consumer protection agency, enforces the equal credit opportunity act ecoa, which prohibits credit discrimination on the basis of race, color, religion. Part 1002 equal credit opportunity act regulation b bankers online javascript must be enabled for the correct page display. Regulation b is a regulation intended to prevent applicants from being discriminated against in any aspect of a credit transaction. The primary objective of ecoa and regulation b is to prevent the denial of credit on the basis of characteristics or conduct that is not related to a borrowers creditworthiness. The equal credit opportunity act and regulation b apply to all credit commercial as well as personal without regard to the nature or type of the credit or the creditor, except for an entity excluded from coverage of this part but not the act by section 1029 of the consumer financial protection act of 2010 12 u. The equal credit opportunity act ecoa prohibits discrimination in any aspect of a credit transaction. Different banks may identify these areas differently, but the functions should be clear from the names used here. The cfpbs regulation b, found at 12 cfr part 1002, implements ecoa. Regulation b outlines the rules that lenders must adhere to when. Specifically, you ask for information concerning the ftcs activities with respect to regulation b during 2019. Information regarding ethnicity, race, sex, marital status, and age is being requested by the federal government for the purpose of monitoring compliance with federal statutes that prohibit creditors from discriminating against applicants on those bases. Equal credit opportunity regulation b background the equal credit opportunity act ecoa of 1974, which is implemented by the boards regulation b, applies to all creditors. Equal credit opportunity act ecoa the equal credit opportunity act ecoa, which is implemented by regulation b, applies to all creditors.
B appear to be consistent in that they both prohibit creditors from discriminating against credit. Equal credit opportunity act ecoa regulation b crcm. The purpose of the equal credit opportunity act the act is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, receipt of public assistance. Fair lending guide national credit union administration. Section 615a of the fair credit reporting act fcra.
Apr 17, 2020 regarding the latter requirement, most lenders are inserting a webpage before the small business administrationapproved loan application that includes certain disclosures, including the following model language from section 1002. Federal register equal credit opportunity act regulation b. The equal credit opportunity act and regulation b 7 sample the following is a list of business areas within banks that are likely to be affected by the requirements and restrictions of ecoa and regulation b. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Financial institutions are prohibited from discrimination based on any of these factors. The equal credit opportunity act of 1974 ecoa was enacted in an era. Executive summary of the equal credit opportunity act. Introduction redit has without question become the american way of life. The law was enacted in 1974 to make it unlawful for creditors to discriminate in any aspect of a credit transaction on the basis of sex or. It should stand to reason, therefore, since credit partially determines access to. Specifically, you ask for information concerning the ftcs activities with respect to regulation b during 2018. Your equal credit opportunity rights consumer information.
Pdf as amended in 1976, the equal credit opportunity act ecoa outlawed discrimination in granting credit on the basis of race, color, religion. People use credit to pay for education or a house, a remodeling job or a car, or to finance a loan to keep their business operating. When originally enacted, ecoa gave the federal reserve board responsibility for prescribing the implementing regulation. Race color religion national origin sex marital status age applicants income from public assistance. The statute requires finan cial institutions and other firms engaged in the extension of credit to make credit equally available.
Mar 28, 2018 the equal credit opportunity act ecoa is a regulation created by the u. The united states sixth circuit court of appeals, in its recent. Start studying equal credit opportunity act ecoa regulation b crcm study guide. The bureau of consumer financial protection bureau is proposing to amend regulation b, which implements the equal credit opportunity act ecoa, and the official interpretation to the regulation, which interprets the requirements of regulation b. Most people need access to credit in order to purchase real estate. Federal reserve system 12 cfr part 202 regulation b. Regulation b implements the equal credit opportunity act ecoa. Does the equal credit opportunity act apply to spousal. Regulation b implements the equal credit opportunity act ecoa and, in part, prohibits a creditor from inquiring about the race, color, religion, national origin, or sex of a credit applicant except under certain circumstances. You request this information for use in preparing the bureau of consumer financial protections cfpb 2018 annual report to congress.
Part 1002 equal credit opportunity act regulation b bankers online javascript must be. Recently, two united states circuit courts of appeal have reached conflicting holdings on whether the ecoa and regulation b apply to spousal guarantees. Ppp loans and complying with the equal credit opportunity act. Amendments to equal credit opportunity act regulation b. Equal credit opportunity act regulation b regulation b was issued by the board of governors of the federal reserve system to implement the provisions of the equal credit opportunity act ecoa. Car dealer equal credit opportunity act ecoa compliance. The amendments made by the equal credit opportunity act amendments of 1976 enacting section 1691f of this title, amending this section and sections 1691b, 1691c, 1691d, and 1691e of this title, repealing section 1609 of this title, enacting provisions set out as notes under this section, and repealing provisions set out as a note under this.
Section 704b of the equal credit opportunity act ecoa, as added by section 1071 of the doddfrank wall street reform and consumer protection act doddfrank act or act, requires th at financial institutions collect and report information concerning credit. Fresh look at the equal credit opportunity act, a the university of. Pdf theory and evidence of the impact of equal credit. The ecoa adverse action requirements are implemented in the boards regulation b. Part 1002 equal credit opportunity act regulation b. Ecoa to the bureau, the bureau is publishing for public comment an interim final rule establishing a new. Oct 15, 2012 opportunity to comment on the consumer financial protection bureau.
Equal credit opportunity act promotes the availability of credit to all creditworthy applicants. The regulation also requires the credit union to notify applicants of action taken on their applications. Regulation b implements the equal credit opportunity act ecoa and, in part, prohibits a creditor from inquiring about the race, color, religion, national origin or sex of a credit applicant except under certain circumstances. Cfpb consumer laws and regulations ecoa cfpb june 20 ecoa 1 equal credit opportunity act ecoa the equal credit opportunity act ecoa, which is implemented by regulation b, applies to all creditors. Equal credit opportunity act regulation b federal register.
It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships. The board is publishing a final rule amending regulation b equal credit opportunity. Sections of this regulation with pending amendments are marked with an asterisk below. Regulation b describes lending acts and practices that are specifically prohibited, permitted, or required. The equal credit opportunity act and regulation b introduction. Regulation b equal credit opportunity act webinar 2012. The equal credit opportunity act ecoa, which is implemented by regulation b, applies to all creditors. The equal credit opportunity act is a critical law that impacts all creditors including auto dealers.
The ecoa prohibits lenders and financial institutions from discriminating when making loans based on any legally protected criteria, including race, religion, age, sex, and more. In this lesson, youll learn about the equal opportunity act and regulation b and how they help ensure that lenders dont. Official staff interpretations of the regulation are. Section 701 of the equal credit opportunity act ecoa requires a creditor to notify a credit applicant when it has taken adverse action against the applicant.
When originally enacted, ecoa gave the federal reserve board responsibility for. Equal credit opportunity act regulation b dawson coop credit. Equal credit opportunity act regulation b disclosure 1. Federal reserve system 12 cfr part 202 equal credit. The equal credit opportunity act ecoa is a united states law codified at 15 u. Mar 12, 2019 regulation b is a regulation intended to prevent applicants from being discriminated against in any aspect of a credit transaction. Equal credit opportunity act regulation b disclosure. The equal credit opportunity act ecoa is a regulation created by the u.
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