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CFPB Releases Reminder for Lenders about Public Assistance

Posted by Lori Christenson on May 20, 2015 1:52:00 PM

CFPB Releases Public Assistance ReminderThe Consumer Protection Financial Bureau (CFPB) is reminding lenders that not accepting public assistance income is a violation of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B.  The Equal Credit Opportunity Act states that a creditor cannot discriminate against an applicant because of income from public assistance.  The lender is not allowed to exclude or refuse vouchers from the Section 8 Housing Choice Voucher (HCV) Homeownership program as a source of income when approving a borrower. 

 

The HCV program was created to help very low-income families in leasing or purchasing a home that is safe, decent, and affordable.  It is funded by the Department of Housing and Urban Development and is administered by public housing agencies.  Participants in the program may choose any housing that meets the requirements of the program, and are not limited to subsidized housing projects.

 

We look at industry happenings and updates every week. You can find last week’s blog post here.

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