Chopra, Hsu encourage use of special purpose credit programs

Federal Issues HUD CFPB OCC Bank Regulatory Regulation B ECOA Fair Housing Act SPCP Consumer Finance

On December 6, CFPB Director Rohit Chopra released a statement regarding HUD’s guidance, also issued that day, clarifying that special purpose credit programs that conform with ECOA and its implementing regulation, Regulation B, generally do not violate the Federal Housing Act. According to HUD’s memorandum, the two statutes are complementary and “intended to harmoniously coexist.” As previously covered by InfoBytes, in December 2020, the CFPB issued an advisory opinion addressing Regulation B as it applies to certain aspects of special purpose credit programs. In his statement, Chopra encouraged creditors “to explore the opportunities available through special purpose credit programs,” which “provide targeted means by which creditors can better serve communities who have been historically shut out or otherwise disadvantaged.”

Acting Comptroller of the Currency Michael Hsu also issued a statement encouraging banks and federal savings associations to “explore the opportunities available through special purpose credit programs.” Taking advantage of the special purpose credit program provisions of ECOA and Regulation B “can be a significant step in addressing the racial and ethnic homeownership and wealth gaps that persist in the United States,” Hsu stated.