American Banker, November 12, 2025, CFPB to gut indirect discrimination in civil rights rule
- What’s at Stake:Â The bureau acknowledges that the elderly, minorities and people with low incomes may be harmed by the changes.
- Expert Quote:Â The proposed rule “will effectively invite a return to redlining and exclusion,” said Jesse Van Tol, president and CEO of the National Community Reinvestment Coalition.
- Key Insight:Â The CFPB claims the statutory language of ECOA makes no reference to disparate-impact claims and should be eliminated.
Jesse Van Tol, president and CEO of the National Community Reinvestment Coalition, called the plan “an outright assault on civil rights in lending.”
“By gutting disparate impact analysis and banning race- or gender-based Special Purpose Credit Programs, this rule will effectively invite a return to redlining and exclusion,” Van Tol said.
In a strange twist, the bureau claims that disparate impact liability would allow lenders to discriminate against non-protected classes.
