"Mortgage trade groups are supporting limits on disparate-impact liability under the Equal Credit Opportunity Act (ECOA) and other proposed changes, according to comment letters submitted Monday to the Consumer Financial Protection Bureau (CFPB). Consumer advocacy groups, however, are urging the CFPB to withdraw the proposal entirely, warning that it would significantly weaken fair lending protections and make credit more expensive and less accessible for women, Black and Latino borrowers, and older adults."
"The amendments would facilitate compliance with ECOA by clarifying the obligations imposed by the statute, the CFPB wrote. The issue gained traction on social media as the deadline for comments came to a close. Mortgage industry veteran Faith Schwartz, founder and CEO of Housing Finance Strategies, shared a video by Nikitra Bailey, executive vice president of the National Fair Housing Alliance (NFHA), criticizing the proposal. The video was widely reshared, with commenters expressing concern over the potential impact of the rule."
Mortgage trade groups submitted comment letters supporting limits on disparate-impact liability under the Equal Credit Opportunity Act (ECOA) and other proposed Regulation B changes. Consumer advocacy groups urged withdrawal of the proposal, arguing it would weaken fair lending protections and make credit more expensive and less accessible for women, Black and Latino borrowers, and older adults. The proposal includes amendments addressing disparate impact, discouragement of applicants or prospective applicants, and Special Purpose Credit Programs under Regulation B. The amendments aim to facilitate compliance with ECOA by clarifying statutory obligations. The issue generated social media attention and criticism from fair housing advocates.
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