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CFPB Final Rule Bars Disparate Impact Under ECOA Regulation B

The CFPB has finalized amendments to Regulation B (12 CFR Part 1002), implementing the Equal Credit Opportunity Act, removing disparate impact liability under the effects test. The rule further defines what constitutes discouragement of credit applicants and adds prohibitions and conditions for special purpose credit programs (SPCPs). The amendments facilitate compliance by clarifying creditor obligations under ECOA.