Federal regulations define special-purpose credit-12 CFR 202.8 to include:
Posted: Tue Mar 08, 2022 10:20 am
Federal regulations define special-purpose credit-12 CFR 202.8 to include:
A. Any credit assistance program authorized by federal or state law for the benefit of an economically disadvantaged class of persons
B. Any credit assistance program offered by a not-for-profit organization for the benefit of its members or for the benefit of an economically disadvantaged class of person
C. A special-purpose credit program must not discriminate on a prohibited basis; however, it can require its participants to share a particular characteristic (such as race or sex) provided the requirement was not established to evade the requirements of the ECOA. If the participants must share a common characteristic, the bank may collect information on that characteristic to determine eligibility
D. If the program includes financial need as a criterion, the creditor can never request and consider information regarding the applicant
A. Any credit assistance program authorized by federal or state law for the benefit of an economically disadvantaged class of persons
B. Any credit assistance program offered by a not-for-profit organization for the benefit of its members or for the benefit of an economically disadvantaged class of person
C. A special-purpose credit program must not discriminate on a prohibited basis; however, it can require its participants to share a particular characteristic (such as race or sex) provided the requirement was not established to evade the requirements of the ECOA. If the participants must share a common characteristic, the bank may collect information on that characteristic to determine eligibility
D. If the program includes financial need as a criterion, the creditor can never request and consider information regarding the applicant