The Consumer Financial Protection Bureau (CFPB) has amended Equal Credit Opportunity Act (ECOA) rules to provide clarity and flexibility to mortgage lenders when collecting ethnicity and race information. The change allows more lenders in permissible cases to use applications, including the revised Uniform Residential Loan Application, with questions about ethnicity and race, eliminating the requirement for separate information-gathering procedures based on factors such as loan volume. The CFPB proposed the change in March.
The ECOA restricts lenders from asking applicants about their color, national origin, race, religion or sex under Regulation B, with some exceptions.
Source: Consumer Financial Protection Bureau (CFPB)
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