The Consumer Financial Protection Bureau (CFPB) has released a proposal to amend Regulation B, stating that it seeks to “provide additional flexibility for mortgage lenders concerning the collection of consumer demographic information.”
Regulation B implements the Equal Credit Opportunity Act (ECOA), a federal civil rights law. Under the CFPB’s proposal, existing restrictions on collecting demographic information on mortgage applications would be relaxed to help the CFPB and other regulatory agencies ensure they are following the law.
“For the mortgage lending industry, the proposal would provide flexibility for individual lenders while supporting the industry’s ability to use consistent forms and practices,” said James Wylie, counsel in the CFPB’s Office of Regulations. “We believe this will help the mortgage industry as it works to adopt new application forms, including the revised Uniform Residential Loan Application.”