Ending Agency's Role Will Increase Housing Inequality, Encourage Financial Predators
WASHINGTON, DC - The Consumer Financial Protection Bureau (CFPB) recently issued a proposed rule that makes significant changes under the Equal Credit Opportunity Act (ECOA). The bureau’s proposal will end the disparate impact standard for enforcement actions, allow lenders to discourage applicants by race, and limit the use of special purpose credit programs to expand access to credit for women, Blacks, Latinos, Asian Americans, Pacific Islanders, Native-Americans, older Americans, and other economically vulnerable families.
Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending (CRL) issued the following response:
The Trump administration's proposal to end the CFPB’s role in fair lending protections under ECOA will worsen housing inequalities, open borrowers up to financial predators, and weaken the financial marketplace.
ECOA and Regulation B are essential for fair lending and a financial marketplace that operates in an equitable and inclusive manner. We urge the administration to let the CFPB fulfill its vital work to ensure credit is available to all and bad actors are held accountable.
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Press Contact: Alfred King alfred.king@responsiblelending.org