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
ADVERTISEMENT
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.

ADVERTISEMENT
Tags: Disparate impactFair lending
ShareTweetPin

Related Posts

Report: More states adopting financial literacy graduation requirements

Report: More states adopting financial literacy graduation requirements

Financial Education
August 22, 2025

With the school year beginning across the nation, 29 states now have a financial literacy graduation requirement, up from just six in 2019, according to a recent report by the National Endowment for Financial Education.

ABA DataBank: Electricity costs surge ahead of prices for all items

ABA DataBank: Electricity costs surge ahead of prices for all items

Economy
August 22, 2025

Consumer prices for electricity have routinely outpaced the headline CPI number.

Federal Reserve once again leaves rates untouched

Powell suggests ‘adjusting’ Fed’s monetary policy stance

Economy
August 22, 2025

Federal Reserve Chairman Jerome Powell said that risks to the U.S. labor market are rising, signaling a possible shift in the Fed’s approach to monetary policy moving forward.

FinCEN’s fentanyl orders: What banks need to know before Oct. 20

FinCEN’s fentanyl orders: What banks need to know before Oct. 20

Compliance and Risk
August 22, 2025

Understanding Treasury’s latest weapon against illicit opioid financing.

Justice Department issues rule to protect bulk personal data from foreign actors

CFPB seeks input on Section 1033 data sharing reconsideration

Compliance and Risk
August 21, 2025

The CFPB is seeking public comment on the costs and challenges of enforcing the Dodd-Frank Act’s data sharing requirements as it considers new rulemaking to implement the law.

Mortgage rates fall

Mortgage rates hold steady

Economy
August 21, 2025

The rate for a 30-year fixed-rate mortgage was 6.58% this week. The rate for a 15-year fixed-rate mortgage was 5.69%.

NEWSBYTES

Report: More states adopting financial literacy graduation requirements

August 22, 2025

ABA DataBank: Electricity costs surge ahead of prices for all items

August 22, 2025

Powell suggests ‘adjusting’ Fed’s monetary policy stance

August 22, 2025

SPONSORED CONTENT

Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

August 1, 2025
Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025

PODCASTS

Demographic trends shaping the U.S. banking outlook

July 30, 2025

Podcast: How institutional banking helps build one regional bank’s strategy

July 24, 2025

The future of careers in risk and compliance

July 17, 2025
ADVERTISEMENT

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

© 2025 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

© 2025 American Bankers Association. All rights reserved.