disparate impact

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The American Bankers Association has sent a letter to the DOJ, Fed, OCC, FDIC, HUD and CFPB requesting confirmation “in interagency guidance, updated exam procedures, and where appropriate amended regulations that the Agencies’ consideration of disparate impact claims in both the supervisory and enforcement context will be governed by standards consistent with the [Supreme] Court’s framework [in Inclusive Communities.]” … Continue Reading

A sharply divided U.S. Supreme Court announced its decision in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. on June 25, 2015, holding that disparate impact claims are cognizable under the Fair Housing Act.

Inclusive Communities does not resolve the question of whether disparate impact claims are cognizable under the Equal Credit Opportunity Act. … Continue Reading

The U.S. Supreme Court ruled this morning that disparate impact claims are cognizable under the Fair Housing Act.  Justice Kennedy wrote the majority opinion in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., in which Justices Ginsburg, Breyer, Sotomayer and Kagan joined.  Justice Alito wrote a dissenting opinion, in which Chief Justice Roberts and Justices Thomas and Scalia joined. … Continue Reading

Yesterday, the House of Representatives approved an amendment to H.R. 2578, the Fiscal Year 2016 Commerce, Justice, and Science Appropriations Act, that would bar the use of appropriated funds by the Department of Justice to bring Fair Housing Act enforcement actions that rely on an allegation of liability under the HUD Disparate Impact Rule. … Continue Reading

In several blog posts and legal alerts, we have previously written about disparate impact and auto finance.  Together with our colleague, Jonathan Selkowitz, we have recently written an article on “Auto Finance and Disparate Impact: Substantive Lessons Learned from Class Certification Decisions.”

The article, which was published in the May 1, 2015 edition of the Consumer Financial Services Law Report, discusses the substantive implications that class certification appellate decisions may have for disparate impact pricing claims alleged against assignees of motor vehicle retail installment sale contracts.… Continue Reading

The U.S. Supreme Court heard oral argument last week in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc.— the case presenting the issue of whether disparate impact claims are cognizable under the Fair Housing Act (FHA).  Two prior cases presenting this issue were settled after merits briefing but before oral argument was heard in the Supreme Court.… Continue Reading

The U.S. Supreme Court is scheduled to hear oral argument tomorrow, January 21st, in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., the case presenting the issue whether disparate-impact claims are cognizable under the Fair Housing Act.

Ballard Spahr attorneys have written an amicus brief submitted by the Houston Housing Authority (HHA). … Continue Reading

The U.S. Supreme Court has set January 21, 2015 as the date for oral argument in
Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., which is the case presenting the issue whether disparate impact claims are cognizable under the Fair Housing Act.  The petitioners’ merits brief was filed on November 17th.… Continue Reading

A federal district court in Washington, D.C. dealt a heavy blow on Monday to HUD’s position that disparate impact claims are cognizable under the Fair Housing Act (FHA).  In American Insurance Association v. U.S. Department of Housing and Urban Development, a case we have been watching for some time, the court issued an opinion vacating the HUD disparate impact rule on the ground that “the FHA prohibits disparate treatment only, and that the defendants, therefore, exceeded their authority under the” Administrative Procedure Act. … Continue Reading

The Federal Reserve Board indicated it is scrutinizing mortgage loan pricing models that comply with Regulation Z but nonetheless, in the view of the Board, significantly increase fair lending risk.  The models set a loan revenue target—based on a higher interest rate, discretionary fees, or both—that varies by mortgage loan originator (MLO). … Continue Reading