CUNA highlights CU commitment to inclusive financial services

December 1, 2020

The Consumer Financial Protection Bureau (CFPB) should clarify fair lending standards under the Equal Credit Opportunity Act (ECOA), CUNA wrote to the bureau Tuesday. The CFPB issued a request for information on methods to ensure nondiscriminatory access to credit, as well as how innovation can help with this access.

“Credit unions have long supported robust fair lending laws, including the Equal Credit Opportunity Act (ECOA), and their use as a tool to help eradicate illegal discrimination from this nation’s consumer financial services and housing markets,” the letter reads. “As part of those efforts, however, it is essential that both financial institutions and consumers have a clear understanding of the standards imposed by the law and the requirements for demonstrating compliance with its mandates.”

CUNA recommends the CFPB update its ECOA examination procedures and revise relevant interagency policy statements related to preventing discriminatory lending.

Other highlights of the letter include:

  • Credit unions are well-purposed and well-positioned to address inequity in the financial services sector, particularly through Minority Depository Institution (MDI) credit unions, which represent approximately 10% of all credit unions;
  • Credit unions are committed to advancing diversity, equity and inclusion; and
  • Credit unions caution the CFPB against adopting a broad, complex section 1071 small business data collection and reporting rulemaking.