On March 9, 2021, the CFPB issued an interpretive rule clarifying that the prohibition against sex discrimination under the Equal Credit Opportunity Act (ECOA) and Regulation B includes sexual orientation discrimination and gender identity discrimination. In their release, the CFPB explains that this prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations. The CFPB also stated that it will review its publications and examination guidance documents and, if needed, update thoseand other materials to reflect this interpretive rule. And, where appropriate, the CFPB stated that they will take enforcement action under ECOA to hold financial institutions accountable for their actions that violate ECOA.
The interpretive rule can be found here.