Exam CRCM topic 1 question 79 discussion

C. A special-purpose credit program must not discriminate on a prohibited basis; however, it can require its participants to share a particular characteristic (such as race or sex) provided the requirement was not established to evade the requirements of the ECOA. If the participants must share a common characteristic, the bank may collect information on that characteristic to determine eligibility. Federal regulations define special-purpose credit to include programs that aim to benefit economically disadvantaged classes of persons, including those authorized by federal or state law or offered by not-for-profit organizations. These programs must not discriminate based on prohibited factors, but they can require participants to share certain characteristics, as long as the requirement is not designed to evade the requirements of the Equal Credit Opportunity Act (ECOA). Therefore, option C accurately describes the definition of special-purpose credit.