As part of the banking industry’s continuing response to President Trump’s executive order outlining “core principles” for financial regulation, ABA today urged federal regulators and law enforcement to reign in disparate impact and redlining investigations that go beyond the law and Supreme Court precedent.
The creditor will need to defend its underwriting practices to “prove” that education level provides some amount of repayment predictability.
The possibility of a 4-4 deadlock hangs over three cases with repercussions for the banking industry when the Court convenes in October.
The Department of Housing and Urban Development last week issued guidance stating that discrimination or “discriminatory effects” toward those with limited English proficiency is forbidden under the Fair Housing Act.
The case that generated last summer’s Supreme Court decision allowing disparate impact cases to be brought under the Fair Housing Act, Inclusive Communities Project Inc. v. Texas Department of Housing and Community Affairs, was dismissed on last week by the district court judge charged with determining whether the housing advocacy plaintiff met the Court’s newly articulated standard for establishing disparate impact.
ABA and other financial services trade associations last week filed a friend of the court brief in the case of American Insurance Association v. HUD supporting AIA’s challenge to the Department of Housing and Urban Development’s disparate impact rule.
A new report from the Federal Trade Commission outlines several risks related to discrimination for companies using “big data” to make decisions about credit, employment and marketing.
The Court noted in its opinion that on remand, the district court may need to review the City’s claims under the U.S. Supreme Court’s recent Inclusive Communities decision.
ABA President and CEO Frank Keating wrote to bank CEOs today to update them on ABA’s pursuit of improved policies from regulatory agencies.
The financial regulators should move quickly to implement the Supreme Court’s guidance on using disparate impact to enforce fair lending rules, according to an editorial in Investor’s Business Daily today.