Reg. B and Small Business Lending

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Question:

To what extend does Reg B apply to an automated small business credit scoring program (eg. notice, adverse action, etc).

Answer:

Regulation B applies to all lending. It is most protective of consumers, but there are several requirements that apply to business lending. The fact that underwriting for small business loans might be based on some form of scoring model will not affect your requirement to provide notices, etc., that would otherwise be required for small business loan applications.

First published on BankersOnline.com 5/16/05