We use a two-step Steffensen-type method [1], [2], [4], [6], [13]-[16] to solve a generalized equation in a Banach space setting under Hölder-type conditions introduced by us in [2], [6] for nonlinear equations. Using some ideas given in [4], [6] for nonlinear equations, we provide a local convergence analysis with the following advantages over related [13]-[16]: finer error bounds on the distances involved, and a larger radius of convergence. An application is also provided.