Acting Comptroller Issues Statement on HUD Guidance for Special Purpose Credit Programs

News Release 2021-130 | December 9, 2021

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu issued the following statement today regarding special purpose credit programs:

Recently, the U.S. Department of Housing and Urban Development released guidance clarifying that special purpose credit programs that conform with the Equal Credit Opportunity Act (ECOA) and Regulation B generally do not violate the Federal Fair Housing Act. This guidance confirms that lenders may use properly designed and implemented special purpose credit programs to help address long-standing home mortgage credit needs for groups that have been economically disadvantaged.

I encourage national banks and federal savings associations to explore the opportunities available through special purpose credit programs. The special purpose credit program provisions of ECOA and Regulation B are one mechanism that banks can use to open the door to homeownership to communities that have been historically shut out or otherwise disadvantaged. Doing so can be a significant step in addressing the racial and ethnic homeownership and wealth gaps that persist in the United States.

I want to thank Secretary Fudge for her leadership on this important issue, and I look forward to our agencies working together to address homeownership and credit availability for communities who have long been denied such opportunities.

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