The Future of Fair Lending Under the CFPB's Regulation B Rule

Regulatory changes do not eliminate compliance risk. In this episode of "Clearly Conspicuous," consumer protection attorney Anthony DiResta interviews financial services regulatory attorney Dimitri Nionakis about the Consumer Financial Protection Bureau's (CFPB) final rule amending Regulation B under the Equal Credit Opportunity Act (ECOA), which pertains to disparate impact claims. Using a practical lending example, Mr. Nionakis explains how a facially neutral policy can create disparate impact concerns and emphasizes that banks and non-bank lenders still face exposure under the Fair Housing Act and state lending discrimination laws, even as the CFPB deprioritizes enforcement of Regulation B and pursuit of ECOA violators and executive orders portend broader policy priority shifts. He outlines why institutions should maintain existing compliance controls, review policies and procedures, train staff and continue auditing fair lending practices to mitigate liability potential.