CFPB Rule Change Opens the Door to Widespread Lending Discrimination During the Nation’s Fair and Affordable Housing Crisis

FOR IMMEDIATE RELEASE:

CFPB Rule Change Opens the Door to Widespread Lending Discrimination During the Nation’s Fair and Affordable Housing Crisis

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today finalized a rule amending Regulation B of the Equal Credit Opportunity Act (ECOA) that substantially weakens long-standing and hard-won fair lending protections, including the requirement to avoid practices that have unnecessary and arbitrary disparate impact on women, people of color, and other protected classes. The new rule also weakens protections against practices that discourage people from applying for credit, and Special Purpose Credit Programs (SPCPs) that have responsibly expanded fair access to homeownership and credit opportunities for tens of thousands of families. The Trump Administration finalized the rule despite SPCPs helping to generate $17.2 billion in economic impact throughout the U.S.

The National Fair Housing Alliance® (NFHA™) strongly opposed this rule when it was proposed in late 2025, leading a coalition of 78 local, state, and national civil rights organizations urging the CFPB not to roll back decades of settled fair lending law. We continue to oppose this final rule in the strongest terms. By dismantling critical accountability mechanisms, the CFPB’s action increases the risk that unlawful discriminatory lending practices will go unchecked and harm creditworthy consumers, further deepening the nation’s fair and affordable housing crisis.  The final rule also jeopardizes the housing finance system’s safety and soundness as lending discrimination distorts the market and stifles economic activity which negatively impacts everyone.

The rule was finalized despite widespread public opposition, including objections raised by everyday people, civil rights and consumer protection organizations, industry players, State Attorneys General, and Members of Congress—opposition the CFPB itself acknowledged constituted a majority of comments submitted in response to the changes when first proposed. NFHA stands committed to protecting fair access to credit that the landmark ECOA regulation was enacted to guarantee, safeguarding civil rights, and advancing the rule of law.

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The National Fair Housing Alliance® (NFHA™) leads a coalition of organizations and individuals that works to end housing discrimination, expand equitable opportunities, and build inclusive, well-resourced, and resilient communities where people can thrive.