Federal Regulators Withdraw Key SPCP Fair Lending Guidance
Seven US agencies have jointly rescinded a 2022 statement that provided regulatory assurance for special purpose credit programs, requiring lenders to reevaluate any programs that use protected characteristics as eligibility criteria.
A group of seven federal agencies, including the CFPB, FDIC, OCC, and DOJ, has jointly rescinded the 2022 “Interagency Statement on Special Purpose Credit Programs,” removing a key source of regulatory assurance for lenders. The 2022 statement had encouraged financial institutions to develop SPCPs to meet the needs of underserved communities, suggesting that programs using protected characteristics like race or sex as eligibility criteria could be permissible under the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA).
The rescission follows a recent CFPB overhaul of Regulation B that restricts for-profit creditors from using race, color, national origin, or sex as criteria for new SPCPs. The agencies state the old framework is irreconcilable with the text of ECOA and the FHA and cite Supreme Court precedent subjecting race-based policies to heightened scrutiny. This action is part of a broader federal retreat from disparate-impact enforcement theories. Lenders who relied on the 2022 statement must now conduct a fresh review of their SPCPs, particularly any with race- or sex-conscious criteria, to ensure compliance with the current, stricter legal and regulatory landscape.