Question came up today and I found myself tounge-tied in trying to explain and wondered if someone could help me with an easy explanation. Reg B provides for the collection of marital status on consumer purchase loans secured by the principal dwelling. Why does Reg B require that you not collect marital status on individual unsecured loans? Thanks.

Because it is not material to the request. Why should I care if a person has a spouse if the applicant has repayment ability, good credit history, etc.? I just want to know if they can and will repay the unsecured loan.

Suppose I should add, because its the law, LOL. Section 202.7(d). There are certain instances where you can, but they better be well defined in your loan policy under credit worthiness and of course be compliant with Reg B.

Be carefull - the rules change if your applicant lives in a community property state. If so, you CAN ask for the marital status, even for individual unsecured loans.

See Reg B - 202.5 (c)(2)(iv)