The CFPB has rescinded a 2020 advisory opinion that provided guidance to lenders on creating and administering Special Purpose Credit Programs (SPCPs), marking another significant shift in the agency's fair lending policies under Acting Director Russell Vought.
The filing in the Federal Register withdraws guidance issued during the first Trump administration that sought to clarify how for-profit lenders could establish SPCPs under the Equal Credit Opportunity Act. The CFPB said the advisory opinion is now inconsistent with amendments it adopted in April 2026 to Regulation B, which governs fair lending requirements.
The Bureau pointed specifically to provisions in the 2020 guidance that contemplated SPCPs based on characteristics such as race, national origin and sex. Under the revised Regulation B rule, however, for-profit organizations are prohibited from using race, color, national origin or sex as eligibility criteria for special purpose credit programs.
The CFPB also emphasized that lenders operating SPCPs must now demonstrate that targeted applicants would actually be denied credit under the institution's normal underwriting standards without the program, replacing a previous standard that relied on whether applicants would probably receive less favorable treatment.
In the filing, the Bureau cited constitutional concerns surrounding race- and sex-based lending programs and said the rescission is intended to prevent confusion about the current legal framework.
The move could have significant implications for credit unions, community lenders and other financial institutions that have used SPCPs to expand credit access in underserved communities. Those institutions may now need to reevaluate program eligibility requirements, documentation practices and compliance procedures to align with the CFPB's revised interpretation of the Equal Credit Opportunity Act.
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