U.S. banking agencies rescind special purpose credit programs statement
Federal banking and housing regulators are rescinding 2022 guidance on special purpose credit programs under the Equal Credit Opportunity Act and Regulation B. The move also withdraws an OCC bulletin that carried the statement and signals that lenders should not rely on the earlier interagency guidance.
Highlights
- Seven U.S. banking agencies, including OCC and FDIC, are rescinding the 2022 interagency statement on special purpose credit programs and OCC Bulletin 2022-3.
- Regulators state lenders may not discriminate based on prohibited characteristics and must not rely on the rescinded 2022 statement or related guidance.
- The rescission follows amendments to Regulation B, which previously allowed lending programs based on race, color, national origin, or sex under specific conditions.
Regulators withdraw 2022 fair lending guidance
As reported by Office of the Comptroller of the Currency, the OCC, Federal Deposit Insurance Corporation, National Credit Union Administration, Consumer Financial Protection Bureau, Department of Housing and Urban Development, Department of Justice, and Federal Housing Finance Agency are rescinding the interagency statement on special purpose credit programs issued in 2022.The agencies say the rescission is meant to make clear that creditors may not discriminate against borrowers based on prohibited characteristics and that they should not rely on the 2022 interagency statement or other related issuances. OCC Bulletin 2022-3, titled "Fair Lending: Interagency Statement on Special Purpose Credit Programs," is also rescinded.
Implications for lenders and community banks
The bulletin says the action may be relevant to community banks that operate special purpose credit programs of the kind described in the 2022 statement. That earlier guidance encouraged creditors to offer programs aimed at meeting the credit needs of specified classes of persons and sought to reassure institutions that were uncertain about whether such programs were permissible.The agencies say the 2022 statement cited a provision of Regulation B that has since been amended. Under the earlier version, creditors were permitted in certain circumstances to implement lending programs based on an applicant's race, color, national origin, or sex, and the interagency statement and related guidance referred to that earlier rule.
Our earlier article on Deloitte’s $21.5 million False Claims Act settlement outlined allegations that the firm falsely certified compliance with federal equal-opportunity requirements while using race- and sex-based employment practices tied to internal demographic targets. We also noted the related whistleblower payment and how the resolution signaled heightened scrutiny of civil-rights compliance for organizations doing business with the federal government.
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