For over 20 years lenders have been prohibited from gathering information about the race, religion, ethnicity, or gender of their loan applicants - except in the case of mortgage lending, where the data must be collected and reported for government monitoring purposes. The Federal Reserve Board has now issued a proposal to drop that prohibition.

The change would have consequences that were not intended. And the cost -particularly to banks and others who are trying to increase minority access to credit - would far exceed any benefit.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.