June 26, 2026
Dear Partners,
We have been closely following the changes to Regulation B of the Equal Credit and Opportunity Act (ECOA) and special purpose credit programs run by for-profit organizations. The new rule does not impact special purpose credit programs operated by nonprofits and governments, and we remain confident that our SPCP was established properly under both ECOA and current case law.
Our position is that the Covenant Homeownership Program is the Commission’s program, not a program offered by lenders. While we cannot provide legal advice, we would point you to this language in the new regulation: “ Compliance with a program authorized by Federal or State law. A creditor does not violate Regulation B when it complies in good faith with a regulation promulgated by a government agency implementing a special purpose credit program under § 1002.8(a)(1). It is the agency’s responsibility to promulgate a regulation that is consistent with Federal and State law.” The Washington State legislature directed the Commission’s establishment of a special purpose credit program and the board of the Commission approved the program. The program was designed to be consistent with Federal and State laws.
The Commission intends to continue to provide the Covenant Homeownership Program and remains confident that it complies with Federal and State laws.
As always, we appreciate your partneship!
The Homeownership Division