The CFPB adopted an interpretive rule providing that sex discrimination, including discrimination on the basis of sexual orientation and gender identity, by lenders is prohibited under the Equal Credit Opportunity Act ("ECOA") and under CFPB Regulation B ("Protection of applicants from discrimination in any aspect of a credit transaction"). The CFPB stated that sex discrimination includes discrimination on the basis of "actual or perceived nonconformity with sex-based or gender-based stereotypes."
The CFPB explained that it adopted this interpretive rule in order to address any uncertainty as to the proper interpretation of the ECOA or Regulation B following the U.S. Supreme Court's ruling in Bostock v. Clayton County, Georgia, which held that sex discrimination under Title VII of the Civil Rights Act of 1964 includes discrimination on the basis of sexual orientation or gender identity discrimination.
The interpretive rule will go into effect upon its publication in the Federal Register.
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