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US agencies scrap lending tool for serving disadvantaged borrowers

Image of President Trump signing an executive order in the Oval Office.
Photo: Andrew Harnik/Getty Images

Several US agencies rescinded Interagency Statement to clarify lenders “can’t discriminate against borrowers based on prohibited characteristics.”

The Biden-era 2022 interagency guidance on Special Purpose Credit Programs (SPCPs), to eliminate policies that may have encouraged participation in race- or sex-conscious equity initiatives, has been formally rescinded by the Federal Deposit Insurance Corporation (FDIC) and several other federal financial regulators.

The agencies said they rescinded the interagency statement “to

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