Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B

CA 22-2: Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 22-2
February 22, 2022

Revised August 21, 2026

Withdrawn: On August 21, 2026, CA Letter 22-2 was withdrawn due to the rescission by other agencies of guidance referenced in the statement, and changes to a non-Board regulation implementing the Equal Credit Opportunity Act.

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:

SUBJECT:

Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B

Applicability: This guidance applies to all institutions supervised by the Federal Reserve.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB or Bureau), the Department of Housing and Urban Development (HUD), the Department of Justice (DOJ), and the Federal Housing Finance Agency (FHFA) (collectively, the agencies) are issuing this interagency statement to remind creditors of the ability under the Equal Credit Opportunity Act (ECOA) and its implementing Regulation B to establish special purpose credit programs to meet the credit needs of specified classes of persons.1

On December 7, 2021, HUD released guidance concluding that special purpose credit programs instituted in conformity with ECOA and Regulation B generally do not violate the Fair Housing Act.2 Accordingly, creditors may consider the use of special purpose credit programs across all types of credit covered by ECOA and Regulation B.

Reserve Banks are asked to distribute this letter to the supervised institutions in their districts and to appropriate supervisory staff. Questions regarding this letter may be sent via the Board’s public website.3

signed by
Eric S. Belsky
Director
Division of Consumer and Community Affairs

Attachments:

Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B

Notes:

1. See 15 U.S.C. § 1691(c)(1)-(3); 12 C.F.R. § 1002.8(a). Return to text.
2. See https://www.hud.gov/sites/dfiles/GC/documents/Special_Purpose_Credit_Program_OGC_guidance_1s2-6-2021.pdf. Return to text.
3. See http://www.federalreserve.gov/apps/contactus/feedback.aspx. Return to text.

PDF

---

NONCONFIDENTIAL // EXTERNAL
1.
Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency Consumer Financial Protection Bureau Department of Housing and Urban Development Department of Justice Federal Housing Finance Agency February 22, 2022 Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB or Bureau), the Department of Housing and Urban Development (HUD), Department of Justice (DOJ), and the Federal Housing Finance Agency (FHFA) (hereafter, the agencies) are issuing this interagency statement to remind creditors of the ability under the Equal Credit Opportunity Act (ECOA) and Regulation B to establish special purpose credit programs to meet the credit needs of specified classes of persons. Many financial institutions have publicly committed billions of dollars to better meet the needs of underserved communities, and this statement calls attention to the special purpose credit options under ECOA and Regulation B.1 ECOA and Regulation B permit creditors to extend special purpose credit offered pursuant to—

• any credit assistance program expressly authorized by Federal or state law for the benefit
  of an economically disadvantaged class of persons;
• any credit assistance program offered by a not-for-profit organization for the benefit of
  its members or an economically disadvantaged class of persons; or
• any special purpose credit program offered by a for-profit organization, or in which such
  an organization participates to meet special social needs, if it meets certain standards prescribed in regulations by the Bureau.2 1 See Equal Credit Opportunity (Regulation B); Special Purpose Credit Programs, 86 Fed. Reg. 3762, 3764 n.26 (Jan. 15, 2021). 2 See 15 U.S.C. § 1691(c)(1)-(3); 12 C.F.R. § 1002.8(a).

NONCONFIDENTIAL // EXTERNAL
2.
On December 21, 2020, the CFPB issued an Advisory Opinion (AO) on special purpose credit programs to clarify the content that a for-profit organization must include in a written plan that establishes and administers a special purpose credit program under Regulation B.3 In addition, the AO clarified the type of research and data that may be appropriate to inform a for-profit organization’s determination to establish a special purpose credit program to benefit a specified class of persons.4 Previously, some stakeholders expressed uncertainty as to the treatment of ECOA and Regulation B special purpose credit programs under the Fair Housing Act (FHA).5 On December 7, 2021, HUD released guidance concluding that special purpose credit programs instituted in conformity with ECOA and Regulation B generally do not violate the FHA.6 Accordingly, creditors may consider the use of special purpose credit programs across all types of credit covered by ECOA and Regulation B. As creditors consider how they may expand access to credit to better address special social needs, the agencies encourage creditors to explore opportunities to develop special purpose credit programs consistent with ECOA and Regulation B requirements as well as applicable safe and sound lending principles. While the agencies do not determine whether a program qualifies for special purpose credit status, creditors with questions about any aspect of ECOA and Regulation B’s special purpose credit provisions may consult their appropriate regulatory agencies. 3 See 86 Fed. Reg. at 3762, 3764–65 (Jan. 15, 2021); see also Susan M. Bernard and Patrice Alexander Ficklin, Expanding Access to Credit to Underserved Communities (July 31, 2020) (calling attention to opportunities to develop special purpose credit programs and use of affirmative advertising consistent with the ECOA and Regulation B requirements). 4 See 86 Fed. Reg. at 3765–66. 5 See 42 U.S.C. § 3601 et seq. 6 See https://www.hud.gov/sites/dfiles/GC/documents/Special_Purpose_Credit_Program_OGC_guidance_1s 2-6-2021.pdf.