CFPB Finalizes New ECOA Rule in Major Fair Lending Pivot

Financial Services attorney Eamonn Moran was cited in an American Banker article about the Consumer Financial Protection Bureau's (CFPB) final rule eliminating the use of the disparate impact theory of liability from enforcement actions involving the Equal Credit Opportunity Act of 1974 (ECOA). Disparate impact refers to policies and practices that appear neutral but disproportionately affect a protected group based on categories such as race or religion; for example, a lending policy requiring a minimum loan amount could seem sound but end up excluding most homes in a minority neighborhood. The CFPB's final rule, published on April 22, 2026, changes language in Regulation B implementing the ECOA to remove provisions authorizing disparate impact liability, contending the statute does not allow for it. Mr. Moran predicted a swift response from state attorneys general and consumer advocacy groups, saying the industry and agency anticipate a battle in court.

"Everybody's expecting litigation to happen pretty quickly. Part of the calculus is that the CFPB is aware that these rules are going to get challenged," he explained.

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