MBA Commends HUD Guidance on Special Purpose Credit Programs

HUD on Dec. 7 released guidance clarifying special purpose credit programs that conform with the Equal Credit Opportunity Act and Regulation B generally do not violate the Federal Fair Housing Act.

Mortgage Bankers Association President & CEO Robert Broeksmit, CMB, issued a statement commending the guidance:

“MBA appreciates HUD’s clarification around the application of the Fair Housing Act to ECOA Special Purpose Credit Programs. SPCPs exist to help low-income and historically disadvantaged borrowers, and this clarification is an important step in providing lenders additional tools to help these borrowers purchase a home.

 “We look forward to working with HUD, the Consumer Financial Protection Bureau and other regulators to assist in the expansion of compliant SPCPs to meet their potential for assisting communities and reducing the racial homeownership gap.”

CFPB Director Rohit Chopra also commended the HUD guidance. “The special purpose credit program provisions of ECOA and Regulation B provide targeted means by which creditors can better serve communities who have been historically shut out or otherwise disadvantaged,” he said in a statement. “I encourage creditors to explore the opportunities available through special purpose credit programs.”

Read the HUD Office of Fair Housing and Equal Opportunity statement on the guidance.