What is regulation B referred to by bankers?

Reg B outlines the rules that lenders must adhere to when obtaining and processing credit information. The regulation prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status.

What is the difference between ECOA and B?

Regulation B is a rule that was created by the Federal Reserve to implement the Equal Credit Opportunity Act (ECOA). The ECOA prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, or use of public aid.

Who is subject to the ECOA and regulation B requirements?

The Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691 et seq. , which is implemented by Regulation B (12 CFR Part 1002 ), applies to all creditors, including credit unions. When originally enacted, ECOA gave the Federal Reserve Board responsibility for prescribing the implementing regulation.

Is Reg B part of fair lending?

The Consumer Financial Protection Bureau’s Regulation B, found at 12 CFR part 1002, implements the ECOA. Regulation B describes lending acts and practices that are specifically prohibited, permitted, or required.

Does Regulation B apply to deposit accounts?

The preamble of the Regulation B regulatory issuance does indicate: “The FCRA therefore applies to adverse action decisions related to credit, but also decisions regarding, for example, a deposit account, insurance product, or employment.

Does Reg B apply to business loans?

So unlike Regulation Z, Regulation B doesn’t worry about whether the application is for personal or business credit. The only way that commercial loans are given any special treatment is in the slightly streamlined adverse action notification procedures of 1002.9.

What is the purpose of Regulation B?

Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant’s ability or willingness to repay the credit requested and could be used to discriminate against the applicant.

Does Reg B apply to deposit accounts?

Does Reg B only apply to consumers?

3601 et seq., unlike ECOA, is not a “Federal consumer financial law” as defined by the Dodd-Frank Act for which the CFPB has supervisory authority. Regulation B applies to all persons who, in the ordinary course of business, regularly participate in the credit decision, including setting the terms of the credit.

How many banking regulations are there?

At the federal level, there are five financial industry regulators: Comptroller of the Currency (OCC) Federal Deposit Insurance Corporation (FDIC) Federal Reserve System (FRS)

What is the purpose of Reg B?

How are banks regulated?

National banks must be members of the Federal Reserve System; however, they are regulated by the Office of the Comptroller of the Currency (OCC). The Federal Reserve supervises and regulates many large banking institutions because it is the federal regulator for bank holding companies (BHCs).

https://www.youtube.com/watch?v=tBnymJbqbKU