ICBA said the Consumer Financial Protection Bureau’s proposal to amend Reg B with the Equal Credit Opportunity Act 's statutory text will reduce regulatory uncertainty and protect community banks from costly litigation, but the proposal needs to be refined.
Details: In a letter to the CFPB, ICBA said the proposal aligns with Executive Orders 14173 and 14281, emphasizing merit-based opportunities and eliminating disparate-impact liability where unsupported by law.
Feedback: ICBA said it:
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Supports the CFPB’s elimination of disparate impact liability under ECOA because the statute lacks an “otherwise adversely affect” clause, which courts have found to trigger disparate impact analysis in other statutes.
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Supports the CFPB’s decision to limit discouragement to oral or written statements and not to include things like branch placement, which has limited communicative value.
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Opposes proposed changes to special-purpose credit program eligibility.