V. Lending — Equal Cre dit Opportunity Act
FDIC Consumer Compliance Examination Manual — March 2022 V–7.3
system, a creditor may use an ap plicant's age
2
as a predictive
variable, provided that the age of an elderly applicant is not
assigned a negative factor or value.
Judgmental Systems. In a judgmental system of evaluating
creditworthiness, a creditor may consider an applicant's age
3
or
whether an applicant's income derives from any public
assistance program
4
only for the purpose of determining a
pertinent element of creditworthiness.
Any System of Evaluating Creditworthiness. In any system of
evaluating creditworthiness, a creditor may consider the age
5
of an elderly applicant when such age is used to favor the
elderly app licant in extending credit.
Use of Credit History Information — 12 CFR § 1002.6(b)(6)
To the extent that a creditor considers credit history in
evaluating the creditworthiness of similarly qualified
applicants for a similar type and amount of credit, in
evaluating an applicant's creditworthiness a creditor shall
consider:
• The credit history, when available, of accounts
designated as accounts that the ap plicant and the
applicant's spouse are permitted to use or for which
both are contractually liable;
• On the applicant's request, any information the
applicant may present that tends to indicate the credit
history being considered by the creditor does not
accurately reflect the applicant's creditworthiness;
and
• On the applicant's request, the credit history, when
available, of any account reported in the name of the
applicant's spouse or former spouse that the applicant
can demonstrate accurately reflects the ap plicant's
creditworthiness.
2
According to the official staff commentary for Regulation B, age may be
taken directly into account in a credit scoring system that is “demonstrably and
statistically sound,” as defined in § 1002.2(p), with one limitation: Applicants
age 62 years or older must be treated at least as favorably as applicants who are
under age 62. If age is scored by assigning points to an applicant's age category,
elderly applicants must receive the same or a greater number of points as the
most favored class of nonelderly applicants.
3
According to the official staff commentary for Regulation B, in a judgmental
system, defined in § 1002.2(t), a creditor may not decide whether to extend
credit or set the terms and conditions of credit based on age or information
related exclusively to age. Age or age-related information may be considered
only in evaluating other “pertinent elements of creditworthiness” that are drawn
from the particular facts and circumstances concerning the applicant. For
example, a creditor may not reject an application or terminate an account
because the applicant is 60 years old. But a creditor that uses a judgmental
system may relate the applicant's age to other information about the applicant
Use of Information Concerning Immigration Status — 12
CFR § 1002.6(b)(7)
A creditor may consider the applicant's immigration status or
status as a permanent resident of the United States, and any
additional information that may be necessary to ascertain the
creditor's rights and remedies regarding repayment.
Use of Information Concerning Marital Status — 12 CFR §
1002.6(b)(8)
Except as otherwise permitted or required by law, a creditor
shall evaluate married and unmarried applicants by the same
standards; and in evaluating joint applicants, a creditor shall
not treat applicants differently based on the existence, absence,
or likelihood of a marital relationship between the parties.
Use of Information Concerning Race, Color, Religion,
National Origin, or Sex — 12 CFR § 1002.6(b)(9)
Except as otherwise p ermitted 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.
State Property Laws — 12 CFR § 1002.6(c)
A creditor's consideration or application of state property laws
directly or indirectly affecting creditworthiness does not
constitute unlawful discrimination for the purposes of the
ECOA or Regulation B.
Rules for Extensions of Credit — 12 CFR § 1002.7
Regulation B has specific provisions regarding extensions of
credit.
Individual accounts. A creditor shall not refuse to grant an
individual account to a creditworthy applicant on the basis of
sex, marital status, or any other prohibited basis.
that the creditor considers in evaluating creditworthiness.
4
According to the official staff commentary for Regulation B, when
considering income derived from a public assistance program, a creditor may
take into account, for example: the length of time an applicant will likely
remain eligible to receive such income; whether the applicant will continue to
qualify for benefits based on the status of the applicant's dependents (as in the
case of Temporary Aid to Needy Families, or social security payments to a
minor); whether the creditor can attach or garnish the income to assure payment
of the debt in the event of default.
5
According to the official staff commentary for Regulation B, any system of
evaluating creditworthiness may favor a credit applicant who is age 62 or older.
A credit program that offers more favorable credit terms to applicants age 62 or
older is also permissible; a program that offers more favorable credit terms to
applicants at an age lower than 62 is permissible only if it meets the special-
purpose credit requirements of § 1002.8.