CFPB Releases Final Rule on Regulation B Under ECOA

This week, the Consumer Financial Protection Bureau (CFPB) issued a final rule amending key provisions of Regulation B under the Equal Credit Opportunity Act (ECOA) . The rule addresses standards related to disparate impact, the prohibition on discouraging applicants or prospective applicants, and the treatment of special purpose credit programs. For ELFA members , this rule signals continued regulatory focus on fair lending expectations and underscores the importance of reviewing policies, procedures, and underwriting practices for alignment with ECOA requirements. At the same time, ELFA is looking ahead to further developments with the CFPB issuance of their final rulemaking regarding Section 1071 . ELFA is monitoring the Bureau’s actions closely and will provide updates as the CFPB advances the rulemaking toward a final framework. Additionally, ELFA is tracking legislative developments, including the Small LENDER Act , which is intended to provide regulatory relief by further tailoring the scope and application of Section 1071 requirements. Our policy team submitted a letter for the record in support of this bill to Chairman French Hill, explaining how this bill thoughtfully addresses longstanding concerns raised by equipment finance providers. The House Financial Services Committee marked up and passed the bill on Tuesday by a 26-22 vote . As this vital bill has advanced through committee, we look forward to its progression in the House of Representatives and hopefully it is brought to the floor for consideration. We are also tracking related efforts in the Senate, including companion legislation introduced by Senator Katie Britt in the Senate Banking Committee, the PROTECTED Act . ELFA is engaging with lawmakers to support efforts that ensure the final framework is balanced, promotes access to credit, and preserves the ability of lenders of all sizes to serve small businesses effectively. As a statutory requirement under the Dodd-Frank Act, Section 1071 will ultimately need to be implemented and enforced. ELFA will constructively engage with regulators and other stakeholders as the implementation phase begins, advocating for guidance and clarifications that support efficient and effective compliance. ELFA remains committed to representing the interests of its members and the millions of small businesses that depend on equipment finance to succeed. As we move into the implementation phase of this rule, we welcome your input and encourage you to share feedback with ELFA’s Vice President of Federal Government Affairs, Allyson Gale .

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CFPB Releases Final Rule on Regulation B Under ECOA

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