The Fed. Reserve Board¿s (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 business loans). This provision minimized 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 possible discrimination in non-mortgage lending. This testimony discusses an analysis of: (1) studies on possible discrimination in non-mortgage lending and the data used in them; (2) FRB¿s 2003 decision to retain the prohibition of voluntary data collection; and (3) the benefits and costs of a data collection and reporting requirement.

This is a print on demand edition of a hard to find publication. The Fed. Home Loan Bank System is a government-sponsored enterprise comprising 12 regionally-based Federal Home Loan Banks (FHLB), the primary mission of which is to support housing finance and community and economic development. Each FHLB makes loans (advances) to member financial institutions in its district, such as banks, which traditionally are secured by single-family mortgages. In 1999, the Gramm-Leach-Bliley Act authorized FHLB to accept alternative forms of collateral, such as agricultural and small business loans, from small members. This report assessed: (1) factors that may limit the use of alternative collateral; and (2) selected aspects of the Federal Housing Finance Agency's related regulatory oversight practices. Illus.

Fair lending : race and gender data are limited for nonmortgage lending : report to congressional requesters.