CFPB to Ax Underserved Borrower Guidance From Trump’s First Term

The Consumer Financial Protection Bureau is eliminating a 2020 advisory opinion outlining how for-profit lenders can set up special lending programs targeting underserved populations, after the agency found the guidance from President Donald Trump’s first term runs afoul of its new rule rolling back fair lending enforcement.

The advisory opinion set for rescission described the language a bank or other for-profit lender can use in establishing a “special purpose credit program” to increase lending to borrowers based on sex, race, and other protected categories, according to a notice set for publication Wednesday in the Federal Register. The CFPB had issued ...