Until Debt Do Us Part Redux

The U.S. Supreme Court recently heard oral arguments in Hawkins v. Community Bank of Raymore. The Court is considering a circuit split to determine if a spousal guarantor is an "applicant" protected by the Equal Credit Opportunity Act (ECOA). At issue is Regulation B which interpreted the ECOA's definition of "applicant" to include a spouse-guarantor. The question is should the term "applicant" include the person who is not directly applying for a loan. Chief Justice Roberts, along with Justices Alito and Scalia, focused on the plain meaning of the term "applicant" which would preclude the need to give deference to Regulation B. The questions from Justices Sotomayor and Ginsburg suggested a willingness to consider the term ambiguous and in need of further explanation bythe CFPB, the agency tasked with overseeing the ECOA.Sixth Circuit precedentgrants deference to the CFPB and applies Regulation B. The Eighth Circuit does not. Until the Court decides Hawkins, creditors