Understanding Regulation B (Reg B)
All lenders are required to comply with Regulation B when extending credit to borrowers. Reg B implements the Equal Credit Opportunity Act (ECOA), which is regulated and enforced by the Consumer Financial Protection Bureau (CFPB). Congress enacted the ECOA to ensure that financial institutions and firms dealing with credit make it equally available to all creditworthy customers. That means any feature that is not related to consumer credit cannot be used when making loan approval decisions.
