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Federal agencies rescind 2022 guidance on special purpose credit programs
The rescission is effective immediately in a notice that directs lenders not to rely on the 2022 SPCP statement, pointing to potential conflicts with ECOA, Regulation B, and Fair Housing Act precedents.
Federal housing and financial regulators have rescinded a 2022 interagency statement on Special Purpose Credit Programs, directing lenders not to rely on the earlier Biden-era guidance. The action is meant to help ensure creditors do not use interpretations in ways that conflict with nondiscrimination requirements under the Equal Credit Opportunity Act and Regulation B, and where applicable, the Fair Housing Act, HousingWire reports.
The notice says the 2022 statement referenced earlier versions of Regulation B that had permitted certain race-based lending programs under specific circumstances. It also argues that related HUD guidance no longer applies, and it cites Supreme Court precedent indicating that race-based policies face heightened scrutiny, while a general desire to remedy societal discrimination is not enough to meet that standard.
The agencies said they are aligning lender obligations with updated Regulation B standards on enhanced eligibility criteria and other nondiscrimination principles. The rescission was issued jointly by the U.S. Department of Housing and Urban Development, the Consumer Financial Protection Bureau, the Department of Justice, the Federal Deposit Insurance Corp., the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Federal Housing Finance Agency, with effect starting Tuesday.
Regulators linked the move to President Donald Trump’s executive orders directing federal agencies to unwind DEI initiatives and review subregulatory guidance tied to the earlier framework. The notice also says creditors should not treat the rescinded statement as a basis for discriminatory lending practices that would be inconsistent with the cited legal standards.