CFPB Issues Final Regulation B Rule Governing Credit Transactions and Lending Procedures

The Equal Credit Opportunity Act prohibits financial institutions from discriminating at any stage of the credit application and lending process, with Regulation B setting out its implementing rules. The revision addresses whether banks can be held responsible when facially neutral policies produce disparities between groups. It also bars special-purpose credit programs from using race, color, national origin or sex as eligibility criteria, directly affecting safeguards for minority borrowers’ access to credit.

The U.S. Consumer Financial Protection Bureau issued the final rule on April 22, 2026, retaining the industry-backed proposal without changes. It removes disparate-impact liability and the effects test while narrowing what constitutes discouraging applicants, and is scheduled to take effect on July 21. On May 27, the National Fair Housing Alliance and two fair-lending compliance companies sued, asking a federal court to vacate the revisions.