Richard Cordray, director of the Consumer Financial Protection Bureau (“CFPB”), issued a letter dated August 30, 2016 (“Cordray Letter”), expressing the CFPB’s views on whether credit discrimination on the basis of gender identity and sexual orientation violates the Equal Credit Opportunity Act (“ECOA”) and Regulation B. The Cordray Letter was issued in response to an inquiry from Services & Advocacy for GLBT Elders (“SAGE”). Specifically, the Cordray Letter addresses whether discrimination on the basis of an applicant’s sex under the ECOA and Regulation B includes discrimination based on gender identity and sexual orientation, including discrimination based on “actual or perceived nonconformity” with gender-based stereotypes. The Cordray Letter concludes that the ECOA and Regulation B prohibit such actions.

It is worth noting, in particular, that the CFPB issued its interpretation about this issue in a “private” letter to SAGE, rather than by proposing changes to Regulation B and allowing the public to comment on the interpretation. And, oddly enough, the Cordray Letter does not appear to be available on the CFPB’s website.