ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Compliance and Risk

Supreme Court OKs Disparate Impact Analysis under Fair Housing Act

June 25, 2015
Reading Time: 2 mins read

The U.S. Supreme Court ruled today that disparate impact claims are enforceable under the Fair Housing Act. The decision in the case — Texas Department of Housing and Community Affairs v. Inclusive Communities Project — included a note of caution that statistical disparities only impose liability if plaintiffs can connect it to a defendant’s policy causing the disparity in order to “protect defendants against abusive disparate-impact claims.”

The 5-4 decision, written by Justice Anthony Kennedy, held that two previous and similar civil rights laws proceeding the Fair Housing Act explicitly authorized disparate impact claims and that case law interpreting those statutes strongly support a similar analysis for the Fair Housing Act. It also held that Congress “ratified such liability” in its 1988 amendments to the law.

However, the opinion foreclosed the use of disparate impact to impose liability “solely on a showing of a statistical disparity.” The court added that “[a] disparate-impact claim relying on a statistical disparity must fail if the plaintiff cannot point to a defendant’s policy or policies causing that disparity.” It instructed lower courts to “examine with care whether a plaintiff has made out a prima facie showing of disparate impact” and to “avoid interpreting disparate-impact liability to be so expansive as to inject racial considerations into every housing decision.”

“ABA and our members are strong advocates for fair lending and enforcement of the Fair Housing Act,” commented ABA President and CEO Frank Keating. “Disparate impact theory, however, is not the right tool to achieve fairness and prevent discrimination in lending. This approach can have unintended consequences, such as causing financial institutions to shrink their operations rather than risk litigation, hurting the very groups it is intended to help.”

The case centered around Texas’ allocation of federal low-income housing tax credits in Dallas. The respondent, a Dallas-based nonprofit, argued that by “disproportionately” allocating the tax credits to minority neighborhoods, the tax credits had a disparate impact on minorities and thus ran afoul of the Fair Housing Act.

Tags: Disparate impactFair lending
ShareTweetPin

Related Posts

Consumer credit increased 4.2% in July

Economy
September 8, 2026

Consumer credit increased at a seasonally adjusted annual rate of 4.2% in July. Total outstanding credit increased to $5,186.2 trillion during the month, from June’s revised total of $5,168.2 trillion. Total outstanding revolving credit, largely a reflection of...

ABA DataBank: Small-business optimism cools in August, remains above average

Economy
September 8, 2026

ABA economists believe that small-business owners remain cautiously optimistic amid a mixed operating environment and that conditions could lead to tepid loan demand for small businesses in the coming months.

FCC proposes ‘robocall scorecard’ to rate voice service providers

FCC proposes ‘robocall scorecard’ to rate voice service providers

Compliance and Risk
September 5, 2026

The FCC is seeking public comment on creating a “robocall scorecard” to measure how voice service providers are protecting consumers from illegal calls. In related news, the commission booted 14 providers from the U.S. telecommunications network.

ABA DataBank: U.S. auto delinquencies approaching pre-Covid highs

IRS to issue final rule on auto loan deduction

Newsbytes
September 4, 2026

The IRS will issue a final rule to implement a new tax deduction for certain automobile purchases, according to a notice in the Federal Register.

ABA highlights banker comments seeking stronger ‘know your customer’ rules for originating providers

Consumers share experiences with AI-enabled scams

Compliance and Risk
September 4, 2026

More than two in five U.S. consumers said they have encountered a scam powered by artificial intelligence, either personally or through someone they know, according to a recent survey by Credit One Bank.

Poll: Financial stress carrying over to workplace

Bank survey finds most middle-income renters view homeownership as out of reach

Mortgage
September 4, 2026

More than two in five middle-income renters say they earn more than their parents did at the same age but still can’t afford a home, according to a recent survey by Neighbors Bank in Missouri.

NEWSBYTES

Consumer credit increased 4.2% in July

September 8, 2026

ABA DataBank: Small-business optimism cools in August, remains above average

September 8, 2026

FCC proposes ‘robocall scorecard’ to rate voice service providers

September 5, 2026

SPONSORED CONTENT

Taming AI Agent Sprawl: A Playbook for Consumer Lending

Taming AI Agent Sprawl: A Playbook for Consumer Lending

September 1, 2026
Grow Public Deposits Without the Operational Burden End Fragment

Grow Public Deposits Without the Operational Burden End Fragment

September 1, 2026
Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

August 20, 2026
Why Your Systems Keep Slowing Down — and What to Do About It

The exam question a backup can’t answer

August 18, 2026

PODCASTS

Podcast: Banking the brave new world of college athletics

August 4, 2026

Podcast: Tactics for meaningful strategic planning

July 28, 2026

Podcast: Why it might be time to revisit a key FDIC ratio

July 23, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.