Equal Credit Opportunity Act

Section 1071 of Dodd-Frank amended the Equal Credit Opportunity Act to require financial institutions to collect and maintain certain data in connection with credit applications made by women- or minority-owned businesses and small businesses.  Such data includes the race, sex, and ethnicity of the principal owners of the business. 

In April 2011, the CFPB issued

The CFPB has issued “ECOA Baseline Review Procedures” to be used by its examiners.  (The CFPB has labeled the procedures “guidance” and did not add them to its Supervision and Examination Manual.)  The procedures consist of six “baseline review modules” for examiners to use “during ECOA baseline reviews to identify and analyze risks

The Bureau’s Mortgage Servicing Examination Procedures, released on October 13, 2011, offer a fascinating insight into the CFPB’s supervision and enforcement priorities. There’s a great deal worthy of comment in the Procedures, but here I want to highlight one aspect of them: the heavy focus on the Equal Credit Opportunity Act.

The CFPB apparently