Notice2026-22645
Fair Lending Report of the Consumer Financial Protection Bureau
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 6, 2026
Issuing agencies
Consumer Financial Protection Bureau
Abstract
The Consumer Financial Protection Bureau (CFPB or Bureau) is issuing its Fair Lending Report of the Consumer Financial Protection Bureau (Fair Lending Report) to Congress. This report describes our fair lending activities in rulemaking; supervision and enforcement; interagency coordination; and stakeholder engagement for calendar year 2025.
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<title>Federal Register, Volume 91 Issue 214 (Friday, November 6, 2026)</title>
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[Federal Register Volume 91, Number 214 (Friday, November 6, 2026)]
[Notices]
[Pages 70067-70077]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22645]
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CONSUMER FINANCIAL PROTECTION BUREAU
Fair Lending Report of the Consumer Financial Protection Bureau
AGENCY: Consumer Financial Protection Bureau.
ACTION: Fair Lending Report of the Consumer Financial Protection
Bureau.
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SUMMARY: The Consumer Financial Protection Bureau (CFPB or Bureau) is
issuing its Fair Lending Report of the Consumer Financial Protection
Bureau (Fair Lending Report) to Congress. This report describes our
fair lending activities in rulemaking; supervision and enforcement;
interagency coordination; and stakeholder engagement for calendar year
2025.
DATES: The CFPB released the 2025 Fair Lending Report on its website on
October 1, 2026.
FOR FURTHER INFORMATION CONTACT: Dave Gettler, Paralegal Specialist,
Office of Regulations, at 202-435-7700 or <a href="https://reginquiries.consumerfinance.gov/">https://reginquiries.consumerfinance.gov/</a>. If you require this document in an
alternative electronic format, please contact
<a href="/cdn-cgi/l/email-protection#ffbcb9afbda0be9c9c9a8c8c969d9693968b86bf9c998f9dd1989089"><span class="__cf_email__" data-cfemail="98dbdec8dac7d9fbfbfdebebf1faf1f4f1ece1d8fbfee8fab6fff7ee">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
1. Introduction
In 2025, the CFPB transformed its fair lending program by
refocusing its regulatory, supervisory, and enforcement activities on
its statutory authority and identified consumer harm. Under previous
administrations, the CFPB was weaponized and had gone beyond its
statutory mandate. In the area of fair lending specifically, CFPB
[[Page 70068]]
leadership uncovered egregious examples of companies being targeted for
protected political speech and exercising their constitutional rights.
Throughout the reporting period, the CFPB worked to correct its course
and reverse the previous administrations' abuses and overreach of its
statutory mandates.
Under President Trump, the CFPB shifted the way it regulates,
supervises, and enforces the laws as required under the Dodd-Frank Wall
Street Reform and Consumer Protection Act (Dodd-Frank Act). The CFPB's
fair lending efforts now focus on proven, intentional racial
discrimination with actual identifiable victims. The CFPB does not
engage in or facilitate unconstitutional racial classification or
discrimination in its enforcement of fair lending laws. The Bureau
employs its resources \1\ on pressing threats to consumers and in the
areas that are clearly within the CFPB's statutory authority, without
duplicating work of other regulators. Enforcement also is being guided
by a new set of principles so that the CFPB focuses on addressing
actual harm to consumers, ensuring due process, seeking collaboration
when appropriate, and promoting efficiency.
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\1\ CFPB, Supervision and Enforcement Priorities (Apr. 2025),
<a href="https://www.consumerfinance.gov/enforcement/supervision-and-enforcement-priorities/">https://www.consumerfinance.gov/enforcement/supervision-and-enforcement-priorities/</a>.
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To guide its fair lending efforts, CFPB leadership prioritized
implementation of several executive orders, including directives
prohibiting unlawful debanking,\2\ terminating all discriminatory and
illegal preferences,\3\ and ending use of disparate impact liability in
the enforcement of civil rights laws.\4\ Accordingly, during the
reporting period, the CFPB stopped using disparate impact in its
supervision and enforcement of fair lending laws and undid previous
actions relying on disparate impact. The CFPB also stopped consulting
with institutions regarding special purpose credit programs (SPCPs)
based on race, color, national origin, or sex and prioritized
addressing unlawful debanking.
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\2\ Exec. Order (E.O.) 14281, Restoring Equality of Opportunity
and Meritocracy, 90 FR 17537 (Apr. 28, 2025), <a href="https://www.federalregister.gov/documents/2025/04/28/2025-07378/restoring-equality-of-opportunity-and-meritocracy">https://www.federalregister.gov/documents/2025/04/28/2025-07378/restoring-equality-of-opportunity-and-meritocracy</a>.
\3\ E.O. 14173, Ending Illegal Discrimination and Restoring
Merit-Based Opportunity, 90 FR 8633 (Jan. 31, 2025), <a href="https://www.federalregister.gov/documents/2025/01/31/2025-02097/ending-illegal-discrimination-and-restoring-merit-based-opportunity">https://www.federalregister.gov/documents/2025/01/31/2025-02097/ending-illegal-discrimination-and-restoring-merit-based-opportunity</a>.
\4\ E.O. 14331, Guaranteeing Fair Banking for All Americans, 90
FR 38925 (Aug. 12, 2025), <a href="https://www.federalregister.gov/documents/2025/08/12/2025-15341/guaranteeing-fair-banking-for-all-americans">https://www.federalregister.gov/documents/2025/08/12/2025-15341/guaranteeing-fair-banking-for-all-americans</a>.
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In support of the President's deregulatory agenda, the CFPB worked
diligently to reverse regulatory overreach, reduce unjustified
regulatory burdens, and streamline and clarify existing regulations. In
2025, the CFPB prioritized two rulemakings related to fair lending.
Both rules were finalized in 2026. The first rulemaking amended
Regulation B, subpart A, implementing the Equal Credit Opportunity Act
(ECOA) to affirm that ECOA does not authorize disparate impact
liability. The rule also prohibits use of race, color, national origin,
or sex as eligibility criteria for SPCPs and clarifies the
discouragement provisions, protecting targeted advertising from
discouragement claims under ECOA. We made these important regulatory
changes to align with the best reading of the law and to minimize risks
of impermissible and unconstitutional discrimination. Importantly, the
changes help ensure that credit is made available to all without regard
to protected class status.
The second rulemaking amended Regulation B, subpart B, implementing
section 1071 of the Dodd-Frank Act. It amended the scope of what
constitutes a covered financial institution and covered credit
transaction, modified the gross annual revenue threshold in the rule's
definition of small business from $5 million or less to $1 million or
less, removed certain data points not required by the statute, and
altered certain requirements related to how data is collected. The 2023
rule had imposed a significant number of requirements that are
unnecessary to advance the purposes of section 1071, and the CFPB now
asks for only what the statute requires. These updates both reduce
unnecessary compliance burdens and result in a substantial cost savings
for impacted institutions, including a one-time savings of nearly $100M
and an annual ongoing savings between $166M and $181M per year.
As this report reflects, we have made great progress implementing
the President's agenda in 2025, and we are very proud of our fair
lending accomplishments. These are only a few examples of the CFPB's
fair lending work in 2025, as described in this report. Although the
reporting period for this report is calendar year 2025, we have also
included some activity that took place outside of the reporting period
due to its importance and relevance to the covered topics.
2. Shifts in Fair Lending Priorities
During the reporting period, the CFPB made significant shifts in
its fair lending work consistent with the current administration and
CFPB leadership's fair lending policies and priorities. As explained in
further detail in the subsections that follow, these changes were also
guided by several executive orders, including Executive Order (E.O.)
14281, ``Restoring Equality of Opportunity and Meritocracy''; \5\ E.O.
14173, ``Ending Illegal Discrimination and Restoring Merit-Based
Opportunity''; \6\ and E.O. 14331, ``Guaranteeing Fair Banking for all
Americans.'' \7\
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\5\ E.O. 14281.
\6\ E.O. 14173, Ending Illegal Discrimination and Restoring
Merit-Based Opportunity, 90 FR 8633 (Jan. 31, 2025), <a href="https://www.federalregister.gov/documents/2025/01/31/2025-02097/ending-illegal-discrimination-and-restoring-merit-based-opportunity">https://www.federalregister.gov/documents/2025/01/31/2025-02097/ending-illegal-discrimination-and-restoring-merit-based-opportunity</a>.
\7\ E.O. 14331.
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2.1 Terminating Disparate Impact
On April 23, 2025, President Trump issued E.O. 14281, ``Restoring
Equality of Opportunity and Meritocracy,'' which directs Federal
agencies to stop using disparate impact liability in the enforcement of
civil rights laws.
Consistent with E.O. 14281, the CFPB no longer uses disparate
impact in its supervision or enforcement of fair lending laws. Also, as
described in section 5 of this report, the CFPB engaged in rulemaking
consistent with these priorities.\8\ In addition, the CFPB has closed
all elements of open supervision exams and enforcement investigations
that relied on disparate impact liability and terminated CFPB orders
that relied on disparate impact liability.
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\8\ See 91 FR 21620 (Apr. 22, 2026).
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Additional activity related to disparate impact occurred since the
end of the reporting period. As discussed in more detail in section
5.1.2 of this report, on April 22, 2026, the CFPB issued a final rule
amending Regulation B. Among other things, the final rule removed the
longstanding ``effects test'' language from Regulation B and its
commentary and replaced it with statements affirming that ECOA does not
authorize disparate impact liability.
2.2 Terminating Consultations on Special Purpose Credit Programs
On January 21, 2025, President Trump issued E.O. 14173, ``Ending
Illegal Discrimination and Restoring Merit-Based Opportunity,'' which
obligates executive departments and agencies ``to terminate all
discriminatory and illegal preferences'' and ``to combat illegal
[[Page 70069]]
private sector'' race- and sex-conscious programs.
Accordingly, the CFPB no longer consults with institutions
regarding any SPCPs that rely on race, color, national origin, or sex.
Consistent with E.O. 14173 and recognizing the broader statutory and
constitutional concerns raised by such programs, the CFPB amended
subpart A of Regulation B, the regulation implementing the ECOA, to
prohibit creditors from offering programs that rely on the race, color,
national origin, or sex of the applicant in making eligibility
determinations.\9\
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\9\ Id.
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2.3 Debanking
On August 7, 2025, President Trump signed E.O. 14331,
``Guaranteeing Fair Banking for All Americans,'' stating that no
American should be denied access to financial services because of their
political or religious beliefs.
Combating unlawful debanking is a priority, and the CFPB has
dedicated resources across the Bureau to implement E.O. 14331 to ensure
banking decisions are made consistent with the law and do not
substitute unlawful practices for ``individualized, objective, and
risk-based analyses.'' \10\
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\10\ E.O. 14331.
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Consistent with the E.O., in 2025, the CFPB reviewed its
Examination Manual and confirmed that it does not reference reputation
risk. The CFPB also reviewed its guidance, regulations, and other
materials used to regulate or examine financial institutions under its
authority for reputation risk concepts that could result in unlawful
debanking. Additionally, the CFPB reviewed consumer complaints, as well
as supervisory and enforcement data, for evidence of potential unlawful
debanking.
In the debanking context, the CFPB evaluates financial institutions
for compliance with ECOA and the Fair Credit Reporting Act (FCRA),
particularly the adverse action notice requirements under those laws.
The CFPB's debanking efforts also focus on religious discrimination. In
addition, the CFPB is working with other regulatory partners, including
the Department of Justice (DOJ), as part of the DOJ's Equal Access to
Banking Task Force, to address debanking issues more broadly.
3. Correcting Previous Administrations' Regulatory Overreach
The previous administrations' regulatory overreach affected many
businesses and necessitated a course correction by the Trump
administration. In the area of fair lending, CFPB leadership uncovered
egregious examples of companies being targeted for protected political
speech and exercising their constitutional rights. In line with new
fair lending priorities, and implementing the administration's agenda,
including executive orders, the CFPB's focus in 2025 was to undo the
regulatory overreach of the previous administrations, including actions
relying on disparate impact and other fair lending matters. The actions
are listed below.
[ssquf] Bureau of Consumer Financial Protection v. Townstone
Financial, Inc. and Barry Sturner (N.D. Ill. 1:20-cv-04176) (not a
credit union or depository institution). On July 15, 2020, the CFPB
filed a lawsuit against Townstone Financial, Inc., a small Midwest firm
with about ten employees and a radio program called Townstone
Financial. The CFPB alleged that Townstone violated ECOA, Regulation B,
and the Consumer Financial Protection Act (CFPA). The CFPB targeted
Townstone based solely on perceived racial disparities in mortgage
application and origination statistics. Townstone was targeted for
protected free speech. CFPB used an audio mining software to search
Townstone's radio show and podcasts finding that they engaged in
political speech with which the CFPB's enforcement disagreed. The CFPB
identified only 16 minutes out of nearly 79 hours of radio content (.33
percent) that it deemed ``disconcerting'' and that ``could be
interpreted as inappropriate, incorrect, or insensitive.'' The
``disconcerting'' conduct was talking about local crime, political
issues around freedom of speech, supporting local law enforcement, and
telling people to check out a neighborhood before buying a home. There
was no evidence of any potential customers reporting Townstone to the
CFPB or finding their content offensive. The action was resolved by
stipulated final judgment and order on November 7, 2024.
On March 26, 2025, shortly after the new leadership came in, the
CFPB filed a motion to vacate a consent order and to return a $100K
fine to Townstone, on the grounds that the CFPB discovered within its
internal case files indications that the CFPB commenced and continued
its investigation and litigation without a substantial predicate of
actionable facts and targeted co-defendants Townstone and Townstone
President and CEO, Barry Sturner, based on constitutionally protected
speech. Although the court denied the CFPB's motion to vacate on June
12, 2025, the CFPB's leadership believes this fair lending case is
prime example of the prior administration's weaponization of the
Bureau.
[ssquf] Consumer Financial Protection Bureau Investigation of
Credova Financial, LLC. The CFPB terminated its investigation into
Credova because the CFPB had determined that the investigation was a
weaponization against disfavored industries and individuals. Credova's
use of innovative financial technology solutions to provide consumer
financing to facilitate Americans exercising their Second Amendment
rights made it a target for the CFPB. The CFPB's demands were also
inconsistent with the realities of how such businesses are run. The
investigation is one of numerous regulation-by-enforcement actions for
which the CFPB became infamous under former Director Chopra. The
investigation was aimed at suppressing activities protected by the
First and Second Amendment. It also represents precisely the kind of
unconstitutional targeting prohibited by E.O. 14331, ``Guaranteeing
Fair Banking for All Americans.''
[ssquf] Consumer Financial Protection Bureau and United States of
America v. Colony Ridge Development, LLC; Colony Ridge BV, LLC; Colony
Ridge Land, LLC; and Loan Originator Services, LLC (S.D. Tex. No. 4:23-
cv-04729) (not a credit union or depository institution). On December
20, 2023, the CFPB, together with the DOJ, filed a complaint against
land development companies Colony Ridge Development, LLC and Colony
Ridge BV, LLC, affiliate mortgage company Colony Ridge Land, LLC
(collectively, the Colony Ridge defendants), and loan origination
company Loan Originator Services, LLC (LOS). The CFPB and the DOJ
alleged that defendants violated ECOA by targeting Hispanic consumers
with a predatory loan product. The CFPB separately alleged violations
of the CFPA and Interstate Land Sales Full Disclosure Act. The DOJ
further alleged defendants' conduct violated the Fair Housing Act
(FHA). On February 10, 2026, pursuant to a joint stipulation of
voluntary dismissal, the CFPB dismissed its claims with prejudice. That
same day, the DOJ notified the court in a joint motion for dismissal
that the DOJ, along with the State of Texas, had reached a settlement
resolving the DOJ's claims and the State of Texas's claims in a related
matter. Following a hearing on the motion, on April 10, 2026, the
remaining parties filed a joint stipulation of dismissal, dismissing
the action with prejudice and withdrawing their request for continuing
jurisdiction. On April 28, 2026, the court dismissed
[[Page 70070]]
the action with prejudice and denied the joint motion for dismissal as
moot.
[ssquf] In re Washington Federal Bank, N.A. (2020-BCFP-0019). On
October 27, 2020, the CFPB issued an order against Washington Federal
Bank, N.A., a federally insured, for-profit national bank headquartered
in Seattle, Washington, to address violations of the Home Mortgage
Disclosure Act (HMDA). On September 22, 2025, pursuant to the CFPB's
authority under 12 U.S.C. 5563(b)(3) and under Paragraph 75 of the
order, the CFPB terminated the order. Washington Federal has fulfilled
several obligations under the order, including paying a civil money
penalty of $200,000, and creating and implementing a compliance plan
designed to ensure that its collection, recording, and reporting of
HMDA data complies with applicable Federal consumer financial laws and
the terms of the order.
[ssquf] In re Washington Federal (2013-CFPB-0005). On October 9,
2013, the CFPB issued an order against Washington Federal, a bank
headquartered in Seattle, Washington, to address violations of HMDA. On
September 22, 2025, pursuant to the CFPB's authority under 12 U.S.C.
5563(b)(3) and under paragraph 3 of article XII of the order, the CFPB
terminated the order. Washington Federal has fulfilled several
obligations under the order, including paying a civil money penalty of
$34,000.
[ssquf] In re Citibank, N.A. (2023-CFPB-0013). On November 8, 2023,
the CFPB issued an order against Citibank, N.A., which is a national
bank headquartered in New York City, New York. The CFPB found that
Citibank violated ECOA and Regulation B. As CFPB was aware, there was a
large-scale fraud perpetuated by a crime ring of Armenians in Southern
California. At the time, several rogue underwriters in one location in
Citi Retail Services looked at Armenian surnames as they evaluated
credit card applications and credit line increases coming from
Glendale, California. As soon as Citi learned of these isolated
occurrences, Citi terminated the employees, re-trained its underwriting
staff, and began monitoring employee communications to ensure their
decision-making was not improperly influenced by an applicant's
national origin. This issue affected a very small number of
applications and there has been no recurrence of the issue since these
measures were implemented in 2021. On October 16, 2025, pursuant to the
CFPB's authority under 12 U.S.C. 5563(b)(3) and under paragraph 74 of
the order, the CFPB terminated the order and waived any alleged non-
compliance therewith. Citibank has fulfilled certain obligations under
the order, including paying a civil money penalty of $24,500,000 to the
CFPB as required by section X, making redress payments of nearly $1.4
million required by section IX, and taking steps to implement
injunctive relief to prevent future violations required by the
``Conduct Provisions.''
[ssquf] In re Bank of America, N.A. (2023-CFPB-0016). On November
28, 2023, the CFPB issued an order against Bank of America, N.A., which
is a national bank headquartered in Charlotte, North Carolina, with
branches and ATMs located in 38 States and the District of Columbia.
The CFPB found that Bank of America violated HMDA and Regulation C. On
June 5, 2025, pursuant to the CFPB's authority under 12 U.S.C.
5563(b)(3) and under paragraph 72 of the order, the CFPB terminated the
order. Bank of America has fulfilled the obligations under the order,
including payment of a civil money penalty of $12,000,000, development
of a compliance plan and an annual report, and implementation of
improvements to its HMDA compliance management system.
[ssquf] Consumer Financial Protection Bureau and United States of
America v. Trident Mortgage Company, LP (E.D. Pa. No. 2:22-cv-02936)
(not a credit union or depository institution). On July 27, 2022, the
CFPB, together with DOJ, filed a complaint and proposed consent order
to resolve allegations that Trident Mortgage Company, LP, violated
ECOA. The court entered the consent order on September 14, 2022. On May
23, 2025, the CFPB and the DOJ filed an unopposed motion to terminate
the consent order and dismiss with prejudice. On June 2, 2025, the
court terminated the consent order and dismissed the case with
prejudice. Trident has demonstrated a commitment to remediation, having
fully disbursed the loan subsidy fund of $18,400,000 under the terms of
the consent order; paid a $4,000,000 civil money penalty; and
substantially complied with the other monetary and injunctive terms of
the consent order.
[ssquf] United States of America and Consumer Financial Protection
Bureau v. Trustmark National Bank (W.D. Tenn. No. 2:21-cv-02664). On
October 22, 2021, the CFPB, together with the DOJ, filed a complaint
and proposed consent order to resolve allegations that Trustmark
National Bank, which is headquartered in Jackson, Mississippi, violated
ECOA. The court entered the consent order on October 27, 2021. On May
20, 2025, the CFPB and the DOJ filed an unopposed motion to terminate
the consent order and dismiss with prejudice. On May 21, 2025, the
court vacated the judgment and dismissed the case with prejudice.
Trustmark has demonstrated a commitment to remediation, having fully
disbursed the loan subsidy fund of $3,850,000 under the terms of the
consent order; paid a $5,000,000 civil money penalty, of which
$1,000,000 was paid to the CFPB; and substantially complied with the
other monetary and injunctive terms of the consent order.
[ssquf] Consumer Financial Protection Bureau v. Draper & Kramer
Mortgage Corporation (N.D. Ill. No. 1:25-cv-00605) (not a credit union
or depository institution). On January 17, 2025, the CFPB filed a
complaint against Draper & Kramer Mortgage Corporation, along with a
proposed consent order, alleging violations of ECOA. On January 24,
2025, the court entered the consent order. On May 15, 2025, the CFPB
issued a no-action letter, pursuant to which the CFPB has ceased
monitoring compliance with the order, is not engaging in any
supervisory activity to assess compliance with the order and will take
no steps to enforce the consent order. Draper & Kramer has already paid
the civil money penalty required by the order and has ceased
originating residential mortgage loans, making expending resources on
monitoring the order unnecessary. The CFPB took this step in the
interest of focusing resources on supporting U.S. taxpayers,
servicemembers, veterans, and small businesses. Also, pursuant to E.O.
14281 on ``Restoring Equality of Opportunity and Meritocracy,'' the
CFPB is focusing its supervisory and enforcement resources on fair
lending matters with direct evidence of intentional racial
discrimination and identified victims, which were not present in this
matter.
[ssquf] In re Synchrony Bank; f/k/a GE Capital Retail Bank (2014-
CFPB-0007). On June 19, 2014, the CFPB issued an order against
Synchrony Bank, to address violations of ECOA and the CFPA's
prohibition on deceptive acts or practices. On May 12, 2025, pursuant
to the CFPB's authority under 12 U.S.C. 5563(b)(3) and under paragraph
95 of the consent order, the CFPB terminated the order. Synchrony has
fulfilled its obligations under the order, including providing at least
$259,000,000 in redress to affected consumers, and paying a civil money
penalty of $3,500,000. In addition, the Bank ceased engaging in the
practices cited in the order dated June 19, 2014. Furthermore, E.O.
14281 mandates that the CFPB eliminate the ``use of disparate-impact
liability in all contexts to the maximum degree possible'' and requires
that the
[[Page 70071]]
CFPB ``evaluate existing consent judgments and permanent injunctions
that rely on theories of disparate-impact liability and take
appropriate action.'' Because this order relied in part on a disparate
impact theory of liability, its termination was appropriate to align
with E.O. 14281.
4. This Administration's Fair Lending Supervision and Enforcement
4.1 Supervision
Title X of the Dodd-Frank Act authorizes the CFPB to supervise
certain consumer financial services companies and large depository
institutions and their affiliates for consumer protection purposes.\11\
The CFPB's Supervision program assesses compliance with Federal
consumer financial protection laws and regulations at banks and
nonbanks over which the CFPB has supervisory authority.
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\11\ 12 U.S.C. 5511(c).
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During the reporting year, the CFPB rescinded its prior supervisory
priorities and redirected its supervision efforts. Consistent with new
priorities, including its focus on debanking, the CFPB reviewed
supervisory data that included complaints received by institutions, for
evidence of potential unlawful debanking.
While redirecting its supervisory resources, the CFPB closed 76
percent of its supervisory actions (nearly 1,500) and a substantial
majority of its outstanding open examinations. Approximately 12 percent
of the supervisory actions closed related to fair lending.
The CFPB's fair lending supervisory activities focus on financial
institutions' compliance with ECOA and the HMDA. ECOA examination work
focuses on uncovering direct evidence of intentional discrimination on
a prohibited basis, systemic failures to provide applicants with
legally required notices of adverse actions, and lenders' systems for
identifying risks of non-compliance with ECOA and Regulation B. HMDA
examination work focuses on validating the accuracy of key data points
collected and submitted by lenders.
During the reporting period, the CFPB did not initiate supervisory
activities or cite any fair lending violations.
4.1.1 Supervision Related Litigation
In September 2022, the CFPB was sued in the U.S. District Court for
the Eastern District of Texas by the U.S. Chamber of Commerce et al.,
challenging an update to the Unfair, Deceptive, or Abusive Acts or
Practices (UDAAP) section of the CFPB's examination manual.\12\ The
updated manual stated that discriminatory conduct may violate the
CFPA's prohibition on unfair practices and provided guidance to
examiners on how discriminatory conduct should be examined to determine
whether it violates the unfairness prohibition. The manual update was
an example of the type of expansion of the CFPB's authority well beyond
the statutory mandate under its prior leadership that the current
leadership seeks to curb. The court granted plaintiffs' motion for
summary judgment, vacated the manual update, and permanently enjoined
the CFPB from engaging in any examination, supervision, or enforcement
action against any member of the plaintiff associations based on the
CFPB's interpretation of its unfairness authority set forth in the
updated manual. The CFPB filed a notice of appeal in November 2023, and
the appeal was stayed by the Fifth Circuit pending the Supreme Court's
resolution of CFPB v. CFSA.\13\ After the Supreme Court issued its
decision in CFPB v. CFSA, the matter was fully briefed before the Fifth
Circuit. On April 30, 2025, the parties filed a joint stipulation to
dismiss the CFPB's appeal. The Fifth Circuit granted the parties'
request and issued its mandate dismissing the appeal on May 1,
2025.\14\
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\12\ ECF No. 1, Chamber of Commerce et al. v. CFPB et al., 6:22-
cv-00381 (E.D. Tex. 2023).
\13\ ECF No. 7, Chamber of Commerce et al. v. CFPB et al., No.
23-40650 (5th Cir.).
\14\ Id., ECF No. 158.
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4.2 Fair Lending Enforcement
Through enactment of the Dodd-Frank Act, Congress authorized the
CFPB to bring actions to enforce Federal consumer financial law,
including ECOA and HMDA.
Under this administration, the CFPB has focused its fair lending
enforcement resources on matters with direct evidence of intentional
racial discrimination and identified victims and has not engaged in or
facilitated unconstitutional racial classification or discrimination in
its enforcement of fair lending laws.
By law, the CFPB must refer to DOJ any matter when it has reason to
believe that a creditor has engaged in a pattern or practice of lending
discrimination in violation of ECOA.\15\ The CFPB may refer other
potential ECOA violations to DOJ as well.\16\ In 2025, the CFPB did not
refer any matters to DOJ pursuant to 15 U.S.C. 1691e(g).
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\15\ 15 U.S.C. 1691e(g).
\16\ Id.
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5. Regulatory Actions To Advance This Administration's Agenda
In support of President Trump's economic strategy, during the
reporting period, the CFPB adopted a robust deregulatory agenda focused
on reversing instances of regulatory overreach.
Regulatory actions for this administration have been guided by
several executive orders. For example, E.O. 14219, titled ``Ensuring
Lawful Governance and Implementing the President's `Department of
Government Efficiency' Deregulatory Initiative,'' \17\ seeks to end
Federal overreach by rescinding unlawful regulations and regulations
that undermine the national interest. Consistent with E.O. 14219, in
2025, the CFPB embarked on several rulemaking projects to streamline
existing regulations and reduce unjustified burdens.
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\17\ E.O. 14219, Ensuring Lawful Governance and Implementing the
President's ``Department of Government Efficiency'' Deregulatory
Initiative, 90 FR 10583 (Feb. 25, 2025), <a href="https://www.federalregister.gov/documents/2025/02/25/2025-03138/ensuring-lawful-governance-and-implementing-the-presidents-department-of-government-efficiency">https://www.federalregister.gov/documents/2025/02/25/2025-03138/ensuring-lawful-governance-and-implementing-the-presidents-department-of-government-efficiency</a>.
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The CFPB's regulatory priorities in 2025 included two fair lending
related rulemakings to amend (1) Regulation B, subpart B, implementing
section 1071 of the Dodd-Frank Act, and (2) Regulation B, subpart A,
implementing ECOA. The CFPB also withdrew non-binding policy guidance
issued by prior administrations.
For more information about the CFPB's regulatory actions, the CFPB
publishes an agenda of its planned regulatory activity as part of the
Unified Agenda of Federal Regulatory and Deregulatory Actions, which is
coordinated by the Office of Management and Budget (OMB).\18\
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\18\ <a href="https://www.consumerfinance.gov/rules-policy/regulatory-agenda">https://www.consumerfinance.gov/rules-policy/regulatory-agenda</a>.
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5.1 Rulemaking
5.1.1 Section 1071, Small Business Lending
In April 2025, the CFPB announced its plans to reconsider certain
aspects of a final rule published in May 2023 that implemented changes
to ECOA made by 15 U.S.C. 1691c-2, also known as section 1071 of the
Dodd-Frank Act. In light of court orders in ongoing litigation and to
help effectuate this reconsideration, the CFPB published an interim
final rule \19\ and then a final rule \20\ that extended the compliance
dates of the 1071 rule by approximately one year. In November 2025, the
CFPB
[[Page 70072]]
published a proposed rule \21\ to change the scope of what constitutes
a covered financial institution and covered credit transaction, to
modify the gross annual revenue threshold in the rule's definition of
small business, to remove certain data points not required by the
statute, and to alter certain requirements related to how data is
collected. The CFPB also proposed extending the rule's compliance date
to January 1, 2028. The CFPB believed these proposed changes would
streamline the rule, reduce complexity for lenders, and improve data
quality, thereby advancing the purposes of section 1071 and complying
with recent executive directives.
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\19\ 90 FR 25874 (June 18, 2025).
\20\ 90 FR 47514 (Oct. 2, 2025).
\21\ 90 FR 50952 (Nov. 13, 2025).
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Additional activity has occurred since the end of the reporting
period. On May 1, 2026, the CFPB issued the final rule.\22\ The rule
reduces the scope of ``covered credit transactions'' by limiting the
types of transactions subject to reporting in order to focus data
collection efforts on core lending products--loans, lines of credit,
and credit cards--that are most utilized by small businesses.
Accordingly, the rule sets forth certain exclusions: merchant cash
advances, agricultural lending, and small-dollar business credit. The
rule also narrows the definition of ``covered financial institutions''
by raising the loan origination threshold from 100 to 1,000 loans
annually and excluding Farm Credit System lenders.
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\22\ 91 FR 23530 (May 1, 2026).
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In addition, the rule revises the definition of ``small business''
by reducing the gross annual revenue threshold from $5 million to $1
million. This will allow the CFPB to focus on collecting data related
to micro and small enterprises, which are most relevant to section
1071's goals. The rule also reduces the number of collected data
points, extends and adopts a uniform compliance date of January 1,
2028, and simplifies the time and manner of data collection in order to
allow institutions flexibility in how they comply with statutory
requirements.
The rule updates are necessary to ensure reasonable implementation
that does not restrict credit availability for America's small
businesses. The 2023 rule imposed a significant number of requirements
that were not needed to advance the purposes of section 1071 of the
Dodd-Frank Act. This rule recognizes those concerns and takes a more
reflective approach, including just what the statute requires. The
updates will result in cost savings for institutions and reduce the
burden of data collection without sacrificing data availability.
More information is available on our website, including a page
compiling key materials related to the CFPB's small business lending
rulemaking.\23\
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\23\ See <a href="https://www.consumerfinance.gov/1071-rule/">https://www.consumerfinance.gov/1071-rule/</a>.
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5.1.2 Section 1071 Rulemaking Related Litigation
During the reporting period, there were four cases pending related
to the previous section 1071 rule issued in March 2023. Following the
revised 1071 rule issued on May 1, 2026, three of those cases have been
dismissed. One remains pending.
[ssquf] Texas Bankers Assoc. v. CFPB. On April 26, 2023, the Texas
Bankers Association and Rio Bank sued the CFPB in the U.S. District
Court for the Southern District of Texas challenging the validity of
the old 1071 rule.\24\ On August 26, 2024, the court granted summary
judgment to the CFPB, upholding the rule in full and rejecting
Plaintiffs' challenges.\25\ Plaintiffs appealed. On February 7, 2025,
after briefings from the parties to update the court on the agency's
current priorities and position, the Fifth Circuit stayed the rule for
plaintiffs and intervenors in the case pending further order from the
court.\26\ Since the close of this reporting period, the parties filed
a joint stipulation to dismiss the appeal as moot and vacate the
judgment of the district court in light of the mootness of this
case.\27\
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\24\ ECF No. 1, Texas Bankers Assoc. v. CFPB, No. 7:23-cv-00144
(S.D. Tex. 2023).
\25\ Id., ECF No. 115.
\26\ ECF No. 134, Texas Bankers Assoc. v. CFPB, No. 24-40705
(5th Cir. 2025).
\27\ Id., ECF No. 179.
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[ssquf] Monticello Banking Co. v. CFPB. On August 11, 2023, the
Kentucky Bankers Association and several Kentucky banks sued to
challenge the old rule in the U.S. District Court for the Eastern
District of Kentucky.\28\ During the reporting period, the CFPB moved
to stay the case while it engaged in a new rulemaking to reconsider its
rule implementing section 1071.\29\ Granting the motion, the court
extended the stay until December 1, 2025.\30\ The court subsequently
extended the stay until the earlier of 21 days following the issuance
of the new rulemaking on section 1071, or March 20, 2026.\31\ Since the
end of the reporting period, in light of the new 1071 rule, plaintiffs
filed a notice of voluntary dismissal and the case was closed on July
1, 2026.\32\
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\28\ ECF No. 1, Monticello Banking Co. v. CFPB, No. 6:23-cv-
00148-KKC (E.D. Ky. 2023).
\29\ Id., ECF No. 49.
\30\ Id., ECF No. 55.
\31\ Id., ECF No. 61.
\32\ Id., ECF No. 75.
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[ssquf] Revenue Based Finance Coalition v. CFPB. Revenue Based
Finance Coalition, a trade association representing merchant cash
advance providers, challenged the old 1071 rule on December 26, 2023,
in the U.S. District Court for the Southern District of Florida.\33\ In
March 2025, the CFPB informed the court that it intended to initiate a
notice of proposed rulemaking revising the challenged 1071 rule in a
way that better aligns with current CFPB priorities as expeditiously as
reasonably possible.\34\ In May 2025, the court stayed the case and
rule and tolled the rule's compliance deadlines for plaintiff and its
members for the length of time that the Fifth Circuit's stay order in
Texas Bankers Association was in effect.\35\ Since the end of the
reporting period, in light of the new 1071 rule the parties filed a
joint stipulation of dismissal. The case was closed on July 1,
2026.\36\
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\33\ ECF No. 61, Revenue Based Finance Coalition v. CFPB, No.
1:23-cv-24882-DSL (S.D. Fla. 2023).
\34\ Id., ECF Nos. 72, 75.
\35\ Id., ECF No. 81.
\36\ Id., ECF Nos. 102, 103.
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[ssquf] Rise Economy v. Vought. On June 23, 2025, Rise Economy,
along with several small businesses and equitable investment
nonprofits, filed a lawsuit against the CFPB regarding its interim
final rule extending the old section 1071 rule's compliance dates and a
press release regarding the CFPB's enforcement priorities.\37\ Since
the end of the reporting period, following issuance of the CFPB's
revisions to its rule implementing section 1071, plaintiffs filed a
notice of voluntary dismissal, which the court granted.\38\
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\37\ ECF No. 1, Rise Economy v. Vought, No. 1:25-cv-02374
(D.D.C. 2025).
\38\ Id., ECF No. 46.
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5.1.3 Regulation B, ECOA
On November 13, 2025, the CFPB published a proposal to amend
provisions of Regulation B, subpart A, implementing ECOA to facilitate
compliance with ECOA by clarifying the obligations imposed by the
statute.\39\
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\39\ See 90 FR 50901 (Nov. 13, 2025).
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The proposed rule provided that ECOA does not authorize disparate
impact claims. It proposed to amend the prohibition on discouraging
applicants or prospective applicants to clarify that it prohibits
statements of intent to discriminate in violation of ECOA and is not
triggered merely by negative consumer impressions. It also proposed to
clarify that encouraging statements by creditors directed at one group
of
[[Page 70073]]
consumers is not prohibited discouragement as to applicants or
prospective applicants who were not the intended recipients of the
statements. The proposed rule would also amend the standards for SPCPs
offered or participated in by for-profit organizations to include new
standards and restrictions.
Additional activity has occurred since the end of the reporting
period. On April 22, 2026, the CFPB issued a final rule amending
Regulation B as proposed.\40\ The final rule removes the longstanding
``effects test'' language from Regulation B and its commentary and
replaced it with statements affirming that ECOA does not authorize
disparate impact liability. Disparate impact was first read into ECOA
based solely on the law's legislative history. However, under the plain
meaning of ECOA's text, disparate impact is not a cognizable theory of
liability under the statute and is contrary to the principles of Equal
Protection.
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\40\ See 91 FR 21620; see also <a href="https://content.consumerfinance.gov/rules-policy/final-rules/equal-credit-opportunity-act-regulation-b/">https://content.consumerfinance.gov/rules-policy/final-rules/equal-credit-opportunity-act-regulation-b/</a>.
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The rule also changes the anti-discouragement provision to limit
prohibited ``statements'' to spoken or written words or visual images
as opposed to broader ``acts or practices'' such as branch placement or
advertisement targeting. Liability also only attaches to statements
that a creditor knows or should know would cause a reasonable person to
believe the creditor would deny, or offer worse terms on, a credit
application because of a prohibited basis characteristic. This change
was designed to protect targeted advertising from discouragement
claims, specifically providing that encouraging messages directed at
one audience would not be treated as discouraging to others who were
not the intended recipients of such messages. Merely controversial or
provocative speech is to be distinguished from statements that do
convey discriminatory exclusion.
In addition, the new rule prohibits for-profit creditors from using
race, color, national origin, or sex (or any combination thereof) as
eligibility criteria for SPCPs. For any SPCPs that still use other
protected classes as eligibility criteria (such as religion, marital
status, age, or public assistance income), the creditor would face new
restrictions, including stringent documentation and evidence
requirements. The stringent new conditions help ensure that Congress's
intent to make these SPCPs available for certain credit transactions
``when it has been clearly demonstrated on the public record that
without such exemption the consumers involved would effectively be
denied credit.'' \41\ The regulatory changes to SPCPs now align with
the law's intended purpose and minimize risks of impermissible and
unconstitutional discrimination.
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\41\ See Joint Explanatory Statement of the Committee of the
Conference, Cong. Rec. H5493 (daily ed. Mar. 4, 1976) (text appears
in House and Senate Reports).
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5.1.4 Rescission of 2020 Advisory Opinion Related to ECOA (Regulation
B); Special Purpose Credit Programs
Additional special purpose credit program-related activity has
occurred since the end of the reporting period. On June 17, 2026, the
CFPB rescinded an advisory opinion issued in December 2020 regarding
Regulation B, as it applies to certain aspects of SPCPs designed and
implemented by for-profit organizations to meet special social needs.
Specifically, the 2020 advisory opinion clarified the content that a
for-profit organization must include in a written plan that establishes
and administers an SPCP under Regulation B. The advisory opinion also
clarified the type of research and data that may be appropriate to
inform a for-profit organization's determination that an SPCP is needed
to benefit a certain class of persons.
The CFPB rescinded the advisory opinion because it contained
statements that conflicted with recent amendments to Regulation B and
to avoid any confusion about the appropriate standards and related
conditions for SPCPs offered or participated in by for-profit
organizations. For example, the advisory opinion stated that all
program participants in an SPCP offered or participated in by a for-
profit organization may be required ``to share one or more common
characteristics (for example, race, national origin, or sex)''; the
April 2026 final rule, however, prohibits any SPCP offered or
participated in by a for-profit organization from using the common
characteristic of race, color, national origin, or sex, or any
combination thereof, as a factor in determining eligibility for the
program.
Relatedly, on August 25, 2026, the CFPB along with its interagency
partners rescinded \42\ the interagency statement on SPCPs that was
issued in 2022.\43\
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\42\ See Interagency Rescission of the Interagency Statement on
Special Credit Programs Under the Equal Credit Opportunity Act and
Regulation B, 91 FR 54875 (Aug. 25, 2026), <a href="https://www.federalregister.gov/documents/2026/08/25/2026-17307/interagency-rescission-of-the-interagency-statement-on-special-purpose-credit-programs-under-the">https://www.federalregister.gov/documents/2026/08/25/2026-17307/interagency-rescission-of-the-interagency-statement-on-special-purpose-credit-programs-under-the</a>.
\43\ See Interagency Statement on Special Purpose Credit
Programs Under the Equal Credit Opportunity Act and Regulation B
(Feb. 22, 2022), <a href="https://files.consumerfinance.gov/f/documents/cfpb_spcp_interagency-statement_2022-02.pdf">https://files.consumerfinance.gov/f/documents/cfpb_spcp_interagency-statement_2022-02.pdf</a>.
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5.2 Withdrawing Non-Binding Policy Guidance
In E.O. 13891, titled ``Promoting the Rule of Law Through Improved
Agency Guidance Documents,'' President Trump directed Federal agencies
to not use guidance documents to attempt to create new rights or
obligations binding on persons or financial institutions outside of the
Federal Government.
In accordance with E.O. 13891, and a realignment of priorities, the
CFPB withdrew 67 guidance documents in May 2025.\44\ The CFPB has
previously issued non-binding policy guidance in myriad forms over its
history, including advisory opinions, other interpretive rules, and
policy statements. The CFPB's current policy is to avoid issuing
guidance except where necessary and where such guidance would reduce
rather than increase compliance burdens.
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\44\ Interpretive Rules, Policy Statements, and Advisory
Opinions; Withdrawal, 90 FR 20084 (May 12, 2025), <a href="https://www.federalregister.gov/documents/2025/05/12/2025-08286/interpretive-rules-policy-statements-and-advisory-opinions-withdrawal">https://www.federalregister.gov/documents/2025/05/12/2025-08286/interpretive-rules-policy-statements-and-advisory-opinions-withdrawal</a>.
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The Fair lending-related guidance withdrawn during the reporting
period includes:
[ssquf] Bulletin 2012-04 re: lending discrimination (Apr. 18,
2012);
[ssquf] Bulletin 2013-01 re: indirect auto lending and compliance
with the Equal Credit Opportunity Act (Mar. 21, 2013);
[ssquf] Bulletin 2015-02 re: section 8 housing choice voucher
homeownership program (May 11, 2015);
[ssquf] Equal Credit Opportunity (Regulation B); Discrimination on
the Bases of Sexual Orientation and Gender Identity, 86 FR 14363 (Mar.
16, 2021);
[ssquf] Equal Credit Opportunity (Regulation B); Revocations or
Unfavorable Changes to the Terms of Existing Credit Arrangements, 87 FR
30097 (May 18, 2022);
[ssquf] Limited Applicability of Consumer Financial Protection
Act's `Time or Space' Exception to Digital Marketers, 87 FR 50556 (Aug.
17, 2022); and
[ssquf] Statement on Enforcement and Supervisory Practices Relating
to the Small Business Lending Rule Under the Equal Credit Opportunity
Act and Regulation B, 88 FR 34833 (May 31, 2023).
For the most current information, please visit our website.
[[Page 70074]]
6. Stakeholder Engagement
Pursuant to the CFPA, the Office of Fair Lending works with private
industry and fair lending, civil rights, consumer, and community
advocates to promote fair lending compliance and education.\45\
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\45\ 12 U.S.C. 5493(c)(2).
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In 2025, the CFPB engaged with external stakeholders to promote its
new fair lending policy priorities through webinars, advisory board
meetings, and coordination with other government agencies. During the
reporting year, the CFPB also published the 2024 HMDA data and several
HMDA data products and resources to serve a variety of data users.
6.1 Fair Lending Outreach
In 2025, the CFPB participated in the Federal Reserve System's 2025
Interagency Fair Lending Webinar,\46\ an annual webinar dedicated to
fair lending compliance issues. During the webinar, the CFPB
highlighted the administration's fair lending priorities, including
debanking efforts and fair lending-related rulemakings.
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\46\ Fed. Reserve Sys., 2025 Fair Lending Interagency Webinar
(Dec. 16, 2025), <a href="https://www.consumercomplianceoutlook.org/events/2025-fair-lending-interagency-webinar">https://www.consumercomplianceoutlook.org/events/2025-fair-lending-interagency-webinar</a>.
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The CFPB also convened a public meeting of its Consumer Advisory
Board (CAB) \47\ focused on fair lending and unlawful debanking, as
well as the previous administration's regulatory overreach and how the
current administration is rectifying these issues. The meeting featured
discussions on the Townstone and Credova enforcement cases, two
examples of the prior weaponization of the CFPB. As discussed
previously, Townstone was targeted for their protected speech, whereas
Credova's use of innovative financial technology solutions to provide
consumer financing to facilitate the exercise of Americans' Second
Amendment rights made it a target for the CFPB. During the CAB meeting,
the CFPB also highlighted the administration's shifts in fair lending
policy and fair lending enforcement and supervision priorities.
---------------------------------------------------------------------------
\47\ CFPB, Winter 2025 Consumer Advisory Board Meeting (Dec. 10,
2025), <a href="https://www.youtube.com/watch?v=BxWELNSn6Go">https://www.youtube.com/watch?v=BxWELNSn6Go</a>.
---------------------------------------------------------------------------
For more information about the CFPB's work on debanking and its
fair lending enforcement and supervision efforts, see this report's
sections 2.3 and 4, respectively.
6.2 Availability of 2024 HMDA Data & Resources
On March 31, 2025, the CFPB announced the availability of the 2024
HMDA modified loan application register data on the Federal Financial
Institutions Examination Council's (FFIEC) \48\ HMDA Platform for
approximately 4,898 HMDA filers.\49\ These data contain loan-level
information filed by financial institutions, modified to protect
consumer privacy.
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\48\ Collectively, the Board of Governors of the Federal Reserve
System (FRB), the Federal Deposit Insurance Corporation (FDIC), the
National Credit Union Administration (NCUA), the Office of the
Comptroller of the Currency (OCC), and the CFPB comprise the FFIEC.
The State Liaison Committee was added to FFIEC in 2006 as a voting
member. Federal Fin. Inst. Examination Council, <a href="https://www.ffiec.gov">https://www.ffiec.gov</a>.
\49\ CFPB, 2024 HMDA Data on Mortgage Lending Now Available
(Mar. 31, 2025), <a href="https://www.consumerfinance.gov/about-us/newsroom/2024-hmda-data-on-mortgage-lending-now-available/">https://www.consumerfinance.gov/about-us/newsroom/2024-hmda-data-on-mortgage-lending-now-available/</a>.
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On July 7, 2025, the CFPB, on behalf of the FFIEC, announced the
availability of ``Snapshot'' National Loan-Level HMDA data, a static
dataset of 2024 mortgage lending transactions at 4,908 financial
institutions reported under HMDA as of May 19, 2025.\50\ The FFIEC also
released derivative data products, including Aggregate and Disclosure
Reports, the HMDA Maps tool, and the 2024 HMDA Data Browser. Lastly,
the FFIEC released the 2024 HMDA Dynamic National Loan-Level Dataset,
One-Year National Loan-Level Dataset for 2023, and the Three-Year
National Loan-Level Dataset for 2021 on the same day.
---------------------------------------------------------------------------
\50\ Federal Fin. Inst. Examination Council, FFIEC Publishes
2024 Data on Mortgage Lending (July 7, 2025), <a href="https://www.ffiec.gov/news/press-releases/2025/an-07-07">https://www.ffiec.gov/news/press-releases/2025/an-07-07</a>.
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Together with the FFIEC, the CFPB updates its HMDA resources
throughout the year to ensure HMDA reporters have the most up-to-date
information. For example, in October 2025, the CFPB released the 2026
Filing Instructions Guide \51\ (an interactive online guide) and the
2025 Supplemental Guide for Quarterly Filers.\52\ The CFPB also works
with the FFIEC to publish data submission resources for HMDA filers and
vendors on its Resources for HMDA Filers website, <a href="https://ffiec.cfpb.gov">https://ffiec.cfpb.gov</a>.
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\51\ CFPB, Filing instructions guide for HMDA data collected in
2025 (Oct. 2025), <a href="https://ffiec.cfpb.gov/documentation/fig/2026/overview">https://ffiec.cfpb.gov/documentation/fig/2026/overview</a>.
\52\ CFPB, Supplemental Guide for Quarterly Filers for 2026
(Oct. 2025), <a href="https://ffiec.cfpb.gov/documentation/fig/2026/supplemental-guide-for-quarterly-filers">https://ffiec.cfpb.gov/documentation/fig/2026/supplemental-guide-for-quarterly-filers</a>.
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The CFPB maintains a comprehensive suite of resources pertaining to
the reporting and use of HMDA data, in addition to the annual HMDA
filing guides released annually by FFIEC. These resources include
Executive Summaries of HMDA rule changes; \53\ Small Entity Compliance
Guide; \54\ Institutional and Transactional Coverage Charts; \55\ a
sample data collection form; \56\ FAQs; \57\ a Beginner's Guide to
Accessing and Using HMDA Data; \58\ and downloadable webinars,\59\
which provide an overview of the HMDA rule.
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\53\ Summaries for several rule changes are available at:
<a href="https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/hmda-reporting-requirements/">https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/hmda-reporting-requirements/</a>.
\54\ CFPB, Home Mortgage Disclosure (Regulation C) Small Entity
Compliance Guide (Feb. 2023), <a href="https://files.consumerfinance.gov/f/documents/cfpb_hmda_small-entity-compliance-guide_2023-02.pdf">https://files.consumerfinance.gov/f/documents/cfpb_hmda_small-entity-compliance-guide_2023-02.pdf</a>.
\55\ CFPB, HMDA Institutional Coverage Chart, <a href="https://files.consumerfinance.gov/f/documents/cfpb_hmda-institutional-coverage_2023.pdf">https://files.consumerfinance.gov/f/documents/cfpb_hmda-institutional-coverage_2023.pdf</a>; CFPB, HMDA Transactional Coverage Chart, <a href="https://files.consumerfinance.gov/f/documents/cfpb_hmda-transactional-coverage_2023.pdf">https://files.consumerfinance.gov/f/documents/cfpb_hmda-transactional-coverage_2023.pdf</a>.
\56\ CFPB, Sample Data Collection Form, <a href="https://files.consumerfinance.gov/f/documents/201708_cfpb_hmda-sample-data-collection-form.pdf">https://files.consumerfinance.gov/f/documents/201708_cfpb_hmda-sample-data-collection-form.pdf</a>.
\57\ CFPB, Home Mortgage Disclosure Act FAQs, <a href="https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/hmda-reporting-requirements/home-mortgage-disclosure-act-faqs/">https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/hmda-reporting-requirements/home-mortgage-disclosure-act-faqs/</a>.
\58\ CFPB, A Beginner's Guide to Accessing and Using Home
Mortgage Disclosure Act Data (June 13, 2022), <a href="https://files.consumerfinance.gov/f/documents/cfpb_beginners-guide-accessing-using-hmda-data_guide_2022-06.pdf">https://files.consumerfinance.gov/f/documents/cfpb_beginners-guide-accessing-using-hmda-data_guide_2022-06.pdf</a>.
\59\ CFPB, HMDA Webinars, <a href="https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/hmda-reporting-requirements/webinars/">https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/hmda-reporting-requirements/webinars/</a>.
---------------------------------------------------------------------------
In addition, HMDA filers can ask questions about HMDA and
Regulation C, including how to submit HMDA data, by emailing the CFPB's
HMDA Help at <a href="/cdn-cgi/l/email-protection#2b63666f6a634e475b6b484d5b49054c445d"><span class="__cf_email__" data-cfemail="5b13161f1a133e372b1b383d2b39753c342d">[email protected]</span></a>. The CFPB also offers financial
institutions, service providers, and others informal staff guidance on
specific questions about the statutes and rules the CFPB implements,
including ECOA and Regulation B and HMDA and Regulation C, through its
Regulatory Inquiries platform.\60\
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\60\ See <a href="https://reginquiries.consumerfinance.gov/">https://reginquiries.consumerfinance.gov/</a>.
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7. Interagency Engagement
Pursuant to section 1013(c)(2)(B) of the CFPA, the Office of Fair
Lending is charged with coordinating with Federal and State regulators
to promote consistent, efficient, and effective enforcement of Federal
fair lending laws. As part of this coordination, the CFPB shares
information, coordinates activity, and promotes best practices with
fellow supervisory and law enforcement agencies to ensure the most
effective use of resources. Proper coordination also helps prevent
regulatory overreach and minimizes regulatory burden by eliminating
supervision outside of the CFPB's authority or duplicative supervision.
In 2025, the CFPB coordinated its fair lending regulatory,
supervisory, and enforcement activities through interagency
organizations and
[[Page 70075]]
taskforces. Specifically, the CFPB coordinated with the DOJ in
connection with the DOJ's Equal Access to Banking Task Force.
Additionally, through the FFIEC, the CFPB has robust engagements
with other partner agencies that focus on fair lending issues. For
example, throughout the reporting period, the CFPB continued to chair
the HMDA Subcommittee, a subcommittee of the FFIEC Task Force on
Consumer Compliance (TFCC). This subcommittee oversees FFIEC projects
and programs involving HMDA data collection, processing, and
publication, the preparation of the annual FFIEC HMDA data processing
budget, and the development and implementation of other related HMDA
processing projects as directed by the TFCC. The CFPB also operates and
maintains the HMDA Platform with costs shared equally among the FFIEC
agencies and the Department of Housing and Urban Development (HUD).
CFPB personnel also meet with personnel from other agencies,
including DOJ and the prudential regulators, to coordinate on and
discuss fair lending issues.
8. Statutory Reporting on Interagency ECOA Enforcement
The CFPB is statutorily required to file a report to Congress
annually describing the administration of its functions under ECOA,
summarizing public enforcement actions taken by other agencies with
administrative enforcement responsibilities under ECOA, and providing
an assessment of the extent to which compliance with ECOA has been
achieved.\61\
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\61\ 15 U.S.C. 1691f.
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8.1 Reporting on ECOA Enforcement
This section covers the enforcement, compliance efforts, and
assessments conducted by the eleven agencies with enforcement authority
under section 704 of ECOA,\62\ as reported by the agencies.
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\62\ 15 U.S.C. 1691c.
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8.1.1 Public Enforcement Actions
In 2025, none of the Federal agencies with ECOA enforcement
authority brought public enforcement actions for violations of ECOA.
Some agencies undertook action consistent with applicable executive
orders. The FTC reported that following E.O. 14281, in the FTC's
administrative action against a large automotive dealer group, Asbury
Automotive, three Texas dealerships it owns, and general manager Ali
Benli, the FTC amended the complaint and removed all references to
allegations of disparate impact under the ECOA and Regulation B.\63\
The remaining aspects of the complaint pertain to the respondents
allegedly engaging in a variety of deceptive and unfair practices to
impose hidden fees for unwanted add-ons on consumers, in violation of
the FTC Act.\64\ Litigation in this administrative matter is currently
stayed, in view of ongoing litigation in a collateral Federal court
matter.\65\
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\63\ See Asbury Auto. Grp., Inc., No. D-9436 (F.T.C. filed Aug.
16, 2024), Order Granting Complaint Counsel's Motion to Partially
Lift Stay of Administrative Proceedings to Amend Administrative
Complaint (with attached amended complaint and notice) (July 17,
2025), <a href="https://www.ftc.gov/legal-library/browse/cases-proceedings/222-3135-asbury-automotive-group-inc-et-al-matter">https://www.ftc.gov/legal-library/browse/cases-proceedings/222-3135-asbury-automotive-group-inc-et-al-matter</a>. These changes
occurred in paras. 32-35, 48-52, and corresponding material in the
introductory paragraph and paras. 1 and 10 of the Amended Complaint.
See also Complaint Counsel's Motion to Partially Lift Stay of
Administrative Proceedings to Amend Administrative Complaint (May 6,
2025)--with attached amended complaint and notice, <a href="https://www.ftc.gov/legal-library/browse/cases-proceedings/222-3135-asbury-automotive-group-inc-et-al-matter">https://www.ftc.gov/legal-library/browse/cases-proceedings/222-3135-asbury-automotive-group-inc-et-al-matter</a>.
\64\ See Asbury Auto. Grp., Inc., No. D-9436 (F.T.C. filed Aug.
16, 2024) (original complaint), and Asbury Auto. Grp., Inc., No. D-
9436 (F.T.C. filed Oct. 8, 2024) (amended complaint) at 8, <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/d9436_asbury_p3_complaint_public_redacted.pdf">https://www.ftc.gov/system/files/ftc_gov/pdf/d9436_asbury_p3_complaint_public_redacted.pdf</a> and <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/611899.2024.10.08_asbury_part_3_administrative_complaint_public.pdf">https://www.ftc.gov/system/files/ftc_gov/pdf/611899.2024.10.08_asbury_part_3_administrative_complaint_public.pdf</a>,
respectively.
\65\ See Asbury Auto. Grp., Inc. No. D-9436 (Nov. 25, 2025)
(order granting the Parties' Joint Expedited Motion for Further Stay
and Continuance of Administrative Proceedings), <a href="https://www.ftc.gov/system/files/ftc_gov/pdf/d9436_2025.11.25_order_granting_the_parties_joint_expedited_motion_for_further_stay_and_continuance_of_administrative_proceedings_.pdf">https://www.ftc.gov/system/files/ftc_gov/pdf/d9436_2025.11.25_order_granting_the_parties_joint_expedited_motion_for_further_stay_and_continuance_of_administrative_proceedings_.pdf</a>;
see also Asbury Auto. Grp., Inc. v. FTC, No. 24-cv-00950 (N.D. Tex.
filed Oct. 4, 2024).
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In addition, in 2025, the CFPB resolved several fair lending-
related public enforcement actions that are described in more detail in
section 4.2 above.
8.1.2 Number of Institutions Cited for ECOA and Regulation B Violations
In 2025, the CFPB and the other agencies collectively reported
citing 140 institutions with violations of ECOA or Regulation B, or
both.
8.1.3 Violations Cited During ECOA Examinations
Among institutions examined for compliance with ECOA and Regulation
B, the FFIEC agencies reported that the most frequently cited
violations were as follows:
Table 3--Regulation B Violations Cited by FFIEC Agencies Enforcing ECOA, 2025
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Regulation B violations cited in 2025 Agency
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12 CFR 1002.4(a); 1002.7(a): Discrimination-- NCUA.
Discrimination on a prohibited basis in a credit
transaction in violation of 1002.4(a); refused
to grant credit to a creditworthy applicant on a
prohibited basis in violation of 1002.7(a).
12 CFR 1002.5(d)(1): Rules concerning requests OCC.
for information--Failure to comply with
limitations on inquiring about an applicant's
marital status.
12 CFR 1002.7(d)(1): Rules concerning extensions FRB.
of credit--Improperly required the signature of
the applicant's spouse or other person without
first determining that the applicant alone did
not qualify for the credit requested.
12 CFR 1002.9(a)(1); (a)(2); (a)(2)(i); OCC,\66\ NCUA,\67\ FDIC,\68\ FRB.\69\
(a)(3)(i); (b)(1); (b)(2); (c)(1)(ii): Adverse
Action--Failure to provide notice to the
applicant 30 days after receiving a completed
application concerning the creditor's approval
of, counteroffer to, or adverse action on the
application in violation of (a)(1); failure to
provide a written adverse action notification
containing all required elements, including a
statement of the action taken, the creditor's
name and address, the ECOA notice required under
701(a), the name and address of the
administering Federal Agency, and specific
reasons for the adverse action or disclosure of
the applicants right to request them in
violation of (a)(2); failure to provide a
statement of the specific reasons for the
adverse action taken in violation of (a)(2)(i);
failure to notify the applicant of action taken
within a reasonable time on an application for
business credit with gross revenues of 1 million
or less in violation of (a)(3)(i); failure to
provide certain information about ECOA in
adverse action notices, including the name and
address of the Federal agency that administers
compliance with ECOA concerning the creditor in
violation of (b)(1); failure to provide a
statement of reasons for adverse action that was
specific and indicated the principal reason(s)
for the adverse action in violation of (b)(2);
failure to provide notice of incomplete
application regarding matters that an applicant
can complete in violation of (c)(1)(ii).
12 CFR 1002.14 (a)(1); (a)(2): Appraisals and FRB,\70\ OCC.\71\
Valuations--Failure to provide appraisals and
other valuations.
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Among institutions examined for compliance with ECOA and Regulation
B, the Non-FFIEC agencies reported that the most frequently cited
violations were as follows:
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\66\ 12 CFR 1002.9(a)(1);(a)(2)(i); (b)(1);(b)(2); (c)(1)(ii).
\67\ 12 CFR 1002.9(a)(1); (a)(2); (b)(2).
\68\ 12 CFR 1002.9(a)(1); (a)(2); (b)(2).
\69\ 12 CFR 1002.9(a)(3)(i).
\70\ 12 CFR 1002.14(a)(1).
\71\ 12 CFR 1002.14(a)(1); (a)(2).
[[Page 70077]]
Table 4--Regulation B Violations Cited by Non-FFIEC Agencies Enforcing ECOA, 2025
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Regulation B violations cited in 2025 Agency
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12 CFR 1002.9(a)(1)(i); (b)(2): Adverse Action-- FCA.
Failure to provide notice to the applicant 30
days after receiving a completed application
concerning the creditor's approval of,
counteroffer to, or adverse action on the
application in violation of (a)(1)(i); failure
to provide sufficient information in an adverse
action notification, including the specific
reasons for the action taken in violation of
(b)(2).
12 CFR 1002.13: Failure to request and collect FCA.
information for monitoring purposes; Failure to
obtain information for monitoring purposes.
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The AMS, SEC, Office of Aviation Consumer Protection (OACP), and
the SBA reported that they received no complaints based on ECOA or
Regulation B in 2025. The FTC is an enforcement agency and does not
conduct compliance examinations.
8.1.4 Referrals to the DOJ
The agencies assigned enforcement authority under section 704 of
ECOA must refer a matter to DOJ when there is reason to believe that a
creditor has engaged in a pattern or practice of lending discrimination
in violation of ECOA.\72\ They also may refer other potential ECOA
violations to DOJ.\73\ In 2025, NCUA made four referrals to DOJ
involving violations of ECOA or Regulation B. Two referrals involved
discrimination based on receipt of public assistance, one involved
discrimination based on age and marital status, and one involved
discrimination based on age alone. The OCC made one referral to DOJ
involving violations of ECOA, Regulation B, and the FHA. The matter
involved discrimination on the basis of race, color, or national origin
in mortgage lending.
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\72\ 15 U.S.C. 691e(g).
\73\ Id.
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In 2025, the CFPB, FDIC, and FRB did not refer any ECOA matters to
DOJ.
9. Statutory Reporting on HMDA
Pursuant to HMDA, the CFPB in consultation with HUD, must report
annually on the utility of HMDA's requirement that covered lenders
report the number and dollar amount of certain mortgage loans and
applications grouped according to census tract, income level, racial
characteristics, age, and gender.\74\
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\74\ 12 U.S.C. 2807.
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The CFPB is currently assessing the utility of this data and
expects to publish a separate report to Congress in late 2026.
Mark Paoletta,
Acting Director, Consumer Financial Protection Bureau.
[FR Doc. 2026-22645 Filed 11-5-26; 8:45 am]
BILLING CODE 4810-AM-P
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