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ARTICLE · 26 NOVEMBER 2025

CFPB Proposed Rule Dramatically Revises ECOA

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On November 13, the CFPB issued a sweeping proposed rule to overhaul Regulation B, arguably the most far-reaching ECOA rewrite in the agency's history.

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Maxwell Earp-Thomas
Maxwell Earp-Thomas
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On November 13, the CFPB issued a sweeping proposed ruleto overhaul Regulation B, arguably the most far-reaching ECOA rewrite in the agency's history.The proposal would eliminate disparate-impact liability under ECOA, sharply narrow the scope of discouragement to focus on explicit statements directed at applicants, and prohibit or heavily restrict the use of protected-class criteria in Special Purpose Credit Programs offered by for-profit organizations.

The proposal follows recent federal directives addressing preference-based programs and cites developments in statutory interpretation that emphasize text based approaches.The Bureau stated that the rulemaking is intended to update Regulation B's framework and clarify the scope of ECOA's protections.

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