CFPB Interpretive Rule On Lending Discrimination Now In Effect

A CFPB interpretive rule was published in the Federal Register providing that sex discrimination by lenders, including on the basis of sexual orientation and gender identity, is prohibited under the Equal Credit Opportunity Act ("ECOA") and CFPB Regulation B. The interpretive rule went into effect on March 16, 2021.

As previously covered, the CFPB adopted this interpretive rule in order to address any uncertainty as to the proper interpretation of the ECOA or Regulation B ("Protection of Applicants from Discrimination in Any Aspect of a Credit Transaction") following the U.S. Supreme Court's ruling in Bostock v. Clayton County, Georgia. In that case, the Supreme Court held that sex discrimination under Title VII of the Civil Rights Act of 1964 includes discrimination on the basis of sexual orientation or gender identity discrimination.