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

Fifth Circuit grants ABA mandamus, vacates transfer order for second time

CFPB releases its Fall 2025 Unified Agenda of Regulatory and Deregulatory Actions

Newsbytes
July 7, 2026

Published twice a year, the URA outlines federal agencies’ anticipated regulatory and deregulatory activities. While the Fall agenda is typically released by the end of the calendar year or in early January, this edition was delayed. New items...

ABA, BPI support proposed process to create drone no-fly zones

ABA, BPI support proposed process to create drone no-fly zones

Cybersecurity
July 7, 2026

In a joint letter to the FAA, ABA and BPI said that unauthorized unmanned aircraft activity near financial institution sites can create “obvious and legitimate risk” to physical security as well as cybersecurity, as the technology can be...

ABA DataBank: November trade balance shows wider deficit on strong imports

International trade deficit increased by $23 billion in May

Economy
July 7, 2026

The May increase in the goods and services deficit reflected an increase in the goods deficit of $23.6 billion to $106.5 billion and an increase in the services surplus of $0.6 billion to $28.9 billion. May exports were...

New York Fed: Consumer inflation expectations rose in June

New York Fed: Consumer inflation expectations rose in June

Economy
July 7, 2026

Perceptions about households’ current financial situations compared to a year ago improved, with a smaller share of households reporting a worse financial situation and a larger share reporting a better financial situation; however, expectations for future credit availability...

Fifth Circuit rules SEC must fix stock buyback rule

ABA comments on SEC semiannual vs. quarterly reporting proposal

Newsbytes
July 7, 2026

ABA supports providing companies with additional flexibility, but noted “several practical considerations may limit the extent to which banks elect semiannual reporting.” ABA encouraged the SEC “to pair any optional semiannual framework with broader modernization of interim reporting...

Louisiana-based Investar inks deal for Wichita Falls Bancshares in Texas

Duo of investment bank buys highlight recent M&A activity

Newsbytes
July 7, 2026

Regions in Alabama buys investment bank Frazier Lanier, while Commerce in Missouri to buy boutique investment bank Nolan & Associates.

NEWSBYTES

CFPB releases its Fall 2025 Unified Agenda of Regulatory and Deregulatory Actions

July 7, 2026

ABA, BPI support proposed process to create drone no-fly zones

July 7, 2026

International trade deficit increased by $23 billion in May

July 7, 2026

SPONSORED CONTENT

Why Your Systems Keep Slowing Down — and What to Do About It

Examiners Are Now Looking at Your Non-Core Systems

June 11, 2026
Your Floorplan Audit and Your Credit Decision Are Weeks Apart. That Gap Has a Price.

Your Floorplan Audit and Your Credit Decision Are Weeks Apart. That Gap Has a Price.

June 1, 2026
A Modern Blueprint for Serving High-Net-Worth Families

A Modern Blueprint for Serving High-Net-Worth Families

May 28, 2026
Why Your Systems Keep Slowing Down — and What to Do About It

AI Is in Your Bank. Is Your Cloud Contract Governing It?

May 20, 2026

PODCASTS

Podcast: Financing America’s independence

June 29, 2026

Podcast: Talent and innovation in community banking

June 18, 2026

Podcast: Understanding bank regulators’ guidance on illegal immigration

June 11, 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.