John Zasada, Shareholder, Financial Institutions Group

On Feb. 22, 2022, an interagency statement was issued reminding financial institutions they can establish special purpose credit programs to help meet the needs of specified classes or persons by the following agencies:

  • The Board of Governors of the Federal Reserve System
  • The Federal Deposit Insurance Corporation
  • The National Credit Union Administration
  • The Office of the Comptroller of the Currency
  • The Consumer Financial Protection Bureau
  • The Department of Housing and Urban Development
  • The Department of Justice
  • The Federal Housing Finance Agency

Special purpose credit programs, pursuant to the Equal Credit Opportunity Act and Regulation B, allow financial institutions to consider a prohibited basis such as race, national origin or sex in extending credit. Although financial institutions are encouraged to explore opportunities to develop such programs, the agencies will not determine whether a program qualifies for special purpose credit status. Rather, questions about the programs should be directed to their regulatory agency.

If you have compliance questions related to your institution’s lending practices, please contact Doeren Mayhew’s regulatory compliance specialists.