AI Regulation Tracker / Guidance status
CFPB AI Lending: Withdrawn Guidance and Current Rules
The CFPB withdrew Circulars 2022-03 and 2023-03 on May 12, 2025. Its July 2026 examination manual also changed its approach to disparate impact. Creditors still need to check adverse-action reasons against the factors used in their decisions.
What changed
The earlier version of this article called the circulars binding and presented older examination findings as current priorities. That was inaccurate. The CFPB lists both circulars as withdrawn, and its July 2026 manual says it will not follow the FFIEC procedures addressing disparate impact. The article has been corrected to reflect those sources.
Adverse-action reasons still need checking
The CFPB's published interpretation of Regulation B requires disclosed reasons to match the factors considered or scored in the decision. As a practical matter, a lender that relies on a vendor model should confirm it can see those factors. That recommendation is ours. Regulation B does not prescribe how lenders obtain those factors from vendors. A credit-score factor disclosure alone is insufficient. The interpretation distinguishes those factors from the reasons for adverse action.
Who should review this
Start with the person responsible for your adverse-action notices. Bring in the model owner and compliance staff if a vendor score, automated underwriting system or pricing model feeds the decision. Counsel should assess the laws and supervisory requirements that apply to your institution and product.
A practical review
Select a sample of declined applications. Trace each notice back to the decision record, including any manual review after the model ran. Check whether the stated reasons describe the factors used. Record gaps that need investigation.
Ask each model vendor how your team can retrieve those factors. Review older compliance checklists for citations to the withdrawn circulars and confirm the basis for any testing they prescribe. The former article's claim that a search for less discriminatory alternatives was a current CFPB exam requirement has been removed.
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Frequently Asked Questions
Were both AI lending circulars withdrawn?
Yes. The CFPB records May 12, 2025 as the withdrawal date for Circulars 2022-03 and 2023-03.
Does the July 2026 manual retain the earlier disparate-impact approach?
No. Page 2, footnote 2 says the CFPB will not follow FFIEC examination procedures that reference disparate impact.
What should a lender check in an adverse-action notice?
Check that its reasons reflect the factors used in the decision. The CFPB's published Regulation B interpretation explains the difference between credit-score factors and the reasons for denying credit.
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Informational analysis for working professionals, not legal advice. Confirm how any rule applies to your situation with qualified counsel.
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