Regulation B — Equal Credit Opportunity Act (ECOA), 12 CFR Part 1002

Updated 2026-06-09

Regulation B, Reg B, the Equal Credit Opportunity Act (ECOA), and 12 CFR Part 1002 all name the same federal fair-lending rule. Regulation B is the implementing regulation for the Equal Credit Opportunity Act (ECOA), which is codified at 15 U.S.C. §§ 1691 et seq. and implemented by the Consumer Financial Protection Bureau (CFPB) at 12 CFR Part 1002. Enacted in 1974, ECOA prohibits discrimination in any aspect of a credit transaction and ensures that every applicant has an equal opportunity to obtain credit. It is one of the most heavily tested fair-lending topics on the NMLS SAFE MLO national exam.

Regulation B Prohibited Bases for Discrimination (ECOA)

Under ECOA and Regulation B, a creditor may not discriminate against an applicant, with respect to any aspect of a credit transaction, on any of the following prohibited bases:

• Race
• Color
• Religion
• National origin
• Sex
• Marital status
• Age (provided the applicant has the capacity to enter into a binding contract)
• Receipt of income from a public assistance program
• The applicant's good-faith exercise of any right under the Consumer Credit Protection Act

Regulation B / ECOA Adverse Action and Notification Requirements

"Adverse action" under ECOA means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested. Key requirements:

• Notification of action taken. A creditor must notify the applicant of the action taken on a credit application, generally within 30 days after receiving a completed application.
• Statement of reasons. When adverse action is taken, the creditor must provide the applicant a written statement of the specific reasons for the action, or a notice of the applicant's right to request those reasons. The notice also identifies the federal agency that enforces ECOA against the creditor.

Regulation B / ECOA Appraisal and Valuation Rights

For an application for credit to be secured by a first lien on a dwelling, the creditor must furnish the applicant with copies of all written appraisals and valuations developed in connection with the application. Copies must be provided promptly upon completion, but no later than three business days before consummation (closing) — whether the credit is extended, denied, or the application is incomplete or withdrawn.

Regulation B / ECOA Government Monitoring Information

For certain dwelling-secured loans, Regulation B requires the creditor to request specific demographic ("government monitoring") information — such as ethnicity, race, sex, marital status, and age — from the applicant. This information is collected so that federal agencies can monitor compliance with fair-lending laws; it may not be used as a factor in the credit decision itself.

Special Purpose Credit Programs (ECOA / Regulation B)

ECOA and Regulation B permit "special purpose credit programs" — credit programs expressly authorized by law, programs offered by nonprofit organizations for their members or for an economically disadvantaged class, and programs offered by for-profit organizations to meet the credit needs of an economically disadvantaged class of persons. Extending credit under a qualifying special purpose credit program is not treated as unlawful discrimination under ECOA.

Enforcement and NMLS Exam Relevance

Regulation B / ECOA is enforced by the CFPB and other federal regulators. For mortgage loan originators, the central exam points are: the prohibited bases for discrimination, the adverse-action notification and statement-of-reasons requirements, the appraisal-copy right, the rule that government monitoring data cannot influence the credit decision, and special purpose credit programs. ECOA works alongside the Fair Housing Act (which covers housing discrimination) and is distinct from — but frequently tested together with — the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) (FCRA / Regulation V).