CFPB Proposes Amendments To Align Regulation B With Revised Regulation C

On March 24, 2017, the Consumer Financial Protection Bureau (CFPB) proposed amendments to Regulation B to "provide additional flexibility for mortgage lenders concerning the collection of consumer demographic information."  The amendments were also necessary to resolve the current rule and timing differences between Regulation B (Equal Credit Opportunity Act (ECOA)) and Regulation C (Home Mortgage Disclosure Act (HMDA)).

Regulation B implements the ECOA, a federal civil rights law prohibiting lenders from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or other protected characteristics.  The CFPB's proposal would make three substantive changes to Regulation B—along with other clarifications and technical corrections—to align Regulation B and Regulation C (as amended by the 2015 HMDA Final Rule) requirements concerning collection of consumer race and ethnicity information.