The Federal Reserve BoardAis (FRB) Regulation B prohibits lenders from collecting certain data from loan applicants, such as their race or gender, for non-mortgage loans (e.g., small bus. loans). FRB has stated that this provision of Regulation B minimizes the chances that lenders would use such data in an unlawful and discriminatory manner. However, others argue that the prohibition limits the capacity of researchers and regulators to identify discrimination in non-mortgage lending. This report analyzes: studies on possible discrimination in non-mortgage lending and the data used in them; FRBAis 2003 decision to retain the prohibition of voluntary data collection; and the benefits and costs of a data collection and reporting requirement.To address objective one, we conducted a literature review to identify articles and studies using nationally recognized ... the possibility of discrimination in nonmortgage lending (i.e., business loans, automobile loans, and credit card loans).
|Author||:||Orice M. Williams|
|Publisher||:||DIANE Publishing - 2009-01-01|