CFPB's ECOA proposal raises alarms for women

"ECOA became the law in 1974 and it stops banks from denying you a loan or a credit card because of who you are and things that you cannot control, like your race, your gender, your skin color, your religion, your age and whether or not you're married, Bailey says in the video. This is a law that gave us women the ability to go into a bank and get a fair loan for a home without having a male co-signer sign on our behalf."

"In addition to removing the CFPB's recognition of disparate impact claims, the proposal would also tighten the definition of what counts as discouraging applicants reducing the situations in which lenders could be held responsible for actions or statements that might deter people from applying for credit. Additionally, the rule would revise the standards for SPCPs, which allow lenders to offer targeted loans to underserved groups without violating the law."

"The proposal said that the changes are intended to clarify lenders' obligations and make it easier to comply with the law. Critics, including fair lending advocates, warned that the proposal could reduce access to credit for women, communities of color and rural residents. NFHA released a public statement when the proposal was announced saying it vehemently opposes the changes. NFHA President and CEO Lisa Rice called the proposed rule change unconscionable and said it mu"

ECOA, enacted in 1974, prohibits denial of loans or credit on the basis of race, gender, skin color, religion, age, and marital status, and enabled women to obtain home loans without male co-signers. A CFPB proposal would remove agency recognition of disparate-impact claims, tighten the definition of what counts as discouraging applicants, and revise standards for SPCPs that permit targeted loans to underserved groups. The proposal aims to clarify lender obligations and simplify compliance. Fair lending advocates warn the changes could reduce credit access for women, communities of color, and rural residents. The NFHA publicly opposes the changes; the public comment period ends Dec. 15.

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