ABA Pushes for Guidance from CFPB on Innovation, Credit Access

In a comment letter to the CFPB filed late Tuesday, ABA offered feedback on ways to prevent credit discrimination under the Equal Credit Opportunity Act and create a regulatory environment that expands access to credit. In response to a request for information from the bureau about ECOA and Regulation B, the association emphasized the need for flexibility “rather than rigid rules” and urged the bureau to provide guidance that would encourage innovation and facilitate broader access to credit.

ABA offered specific comments related to the CFPB’s approach to disparate impact liability; serving borrowers with limited English proficiency; special purpose credit programs; affirmative advertising; discrimination based on sexual orientation and gender identity; public assistance income; artificial intelligence and machine learning; and adverse action notices.

“Where ECOA and Regulation B are ambiguous, we recommend that the Bureau address issues by offering examples of compliance in formal guidance documents, working with other regulators where appropriate,” ABA said. “Doing so will increase efficiencies and allow banks to adopt new technology that can help increase access to credit for more individuals and small businesses.”