Letter to Credit Unions (22-CU-03) Special Purpose Credit Programs

NCUA joined other federal financial institution regulatory agencies, in conjunction with the Department of Housing and Urban Development (HUD), the Federal Housing Finance Agency, and the Department of Justice (hereafter, the agencies) to issue an interagency statement to remind creditors of the ability under the Equal Credit Opportunity Act (ECOA) and Regulation B to establish special-purpose credit programs (SPCPs) to meet the credit needs of specified classes of persons. SPCPs are credit assistance programs for economically or socially disadvantaged consumers and commercial enterprises.

The statement explains that ECOA and Regulation B permit creditors to extend special-purpose credit offered pursuant to:

• Any credit assistance program expressly authorized by federal or state law for the benefit of an economically disadvantaged class of persons;
• Any credit assistance program offered by a not-for-profit organization for the benefit of its members or an economically disadvantaged class of persons; or
• Any special-purpose credit program offered by a for-profit organization, or in which such an organization participates to meet special social needs, if it meets certain standards prescribed in regulations by the Consumer Financial Protection Bureau (CFPB).

Read the Letter to Credit Unions