On April 22, 2026, the CFPB issued a final rule amending Regulation B (ECOA) provisions regarding disparate impact, discouragement of applicants or prospective applicants, and special-purpose credit programs.

This final rule amends the following provisions and is effective July 21, 2026:

• Disparate Impact: ECOA does not recognize disparate-impact liability known as the “effects test.” This rule removes all regulatory text and commentary implying disparate-impact claims are valid.
• Discouragement: This rule amends Section 1002.4(b) to clarify how discouragement of applicants or prospective applicants is evaluated, aligning more closely with ECOA’s statutory purpose and the CFPB’s rulemaking authority.
• Special Purpose Credit Programs (SPCPs): These are credit programs designed to intentionally target and benefit economically disadvantaged classes of people, promoting access to credit. This rule refines the eligibility and compliance requirements for these programs offered by for-profit organizations to better align with ECOA’s purpose of expanding fair access while preventing discriminatory practices.

In response to this final rule, banks should update their fair lending policies and procedures to remove references to disparate‑impact analysis and confirm compliance focuses on intentional discrimination under ECOA. Banks should also review marketing practices, application processes, and any Special Purpose Credit Programs to ensure alignment with the revised Regulation B requirements and provide training to affected staff as needed.

You can access the final rule here.

CCI suggests you forward this information to your Compliance Officer and Lending staff. Please reach out to us via inquiries@completecompli.com if you have any questions.

Jackie Smith, CRCM, FLE