CFPB Amends Regulation B for Collecting Ethnicity and Race Information
On September 20th the Consumer Financial Protection Bureau (CFPB) amended Regulation B in order for mortgage lenders to have more flexibility in collecting race and ethnicity information. The changes, which were proposed in March, will not require mortgage lenders to maintain different collection practices depending on their loan volume. Lenders will be able to use application forms that include expanded requests for ethnicity and race information, including the revised Uniform Residential Loan Application. The rule is generally effective on January 1, 2018. However, the amendment removing the existing Uniform Residential Loan Application form in amendatory instruction 6 is effective January 1, 2022.
http://files.consumerfinance.gov/f/documents/201709_cfpb_final-rule_regulation-b.pdf
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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