SPCPs - An Effective Fair Lending Tool for Community Banks

Описание: The CFPB under their recent Notice of Proposed Rule Making is trying to ban Special Purpose Credit Programs, or SPCPs, for all intents and purposes.

This proposal hurts community banks. SPCPs, while not widely used, are a powerful tool for community banks when their lending penetrations to minority groups or minority areas are lagging their peers at a statistically significant level.

SPCPs fill in the short term gap to increase penetration rates while long term solutions such as outreach and new branches can be developed. Be sure to comment on the SPCP ban by December 15th to help show support for community banks having this tool that helps ensure their fair lending compliance.

I’m Nate the Fair Banking Nerd and I’m dedicated to helping community banks find practical solutions to their fair banking risks. Thank you.