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#563464 - 06/07/06 06:42 PM Reg B question
Denny Offline
Member
Denny
Joined: Jun 2002
Posts: 79
Pa
Reg B doesn't allow Banks to discriminate based on race,sex,etc. We always think of this as meaning we can't treat minorities less favorably than we do non-minorities. However is it not true, that we can't treat minorities more favorably than we do non-minorities?

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Lending Compliance
#563465 - 06/07/06 07:12 PM Re: Reg B question
Sound Tactic Offline
Power Poster
Sound Tactic
Joined: Feb 2005
Posts: 5,349
9) Race, color, religion, national origin, sex. Except as otherwise permitted or required by law, a creditor shall not consider race, color, religion, national origin, or sex (or an applicant's or other person's decision not to provide the information) in any aspect of a credit transaction.
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#563466 - 06/07/06 08:43 PM Re: Reg B question
JSH Offline
New Poster
Joined: Jan 2002
Posts: 20
Eden Prairie, MN, USA
Yes, it is not true. There is no such concept of "minorities" in the regulation. If you favor one ethnicity, you are effectively disfavoring all others on the basis of ethnicity. Each Applicant should be considered on a race neutral basis unless you have a special purpose program as contemplated in 202.8. However, I believe most regulators make an institution go through an application process to establish a special purpose program.

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