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Supreme Court Upholds FHA's Disparate Impact Theory

Supreme Court Upholds FHA's Disparate Impact Theory

Posted by Andy Barksdale on Jun 25, 2015 12:35:00 PM
Andy Barksdale

The Supreme Court announced their ruling on disparate impact, upholding the Fifth Circuit Court of Appeal's decision that "disparate impact claims are cognizable under the Fair Housing Act." Read more about the ruling here.

The long-awaited test of disparate impact was delivered today by the Supreme Court. A divided court (5-4 decision) upheld the use of “disparate impact” legal theory in fair lending discrimination cases. 

supreme-court-disparate-impact

As reported by the American Banker, “The high court's decision bolsters efforts by law enforcement authorities and the Consumer Financial Protection Bureau, which have brought legal cases alleging fair-lending violations by lenders despite claims that no discrimination was intended.” 

Justice Anthony Kennedy delivered the opinion of the court. Justice Kennedy stated, “Recognition of disparate-impact claims is consistent with the FHA’s central purpose.”

TRUPOINT will continue to monitor developments and share updates as they occur. As always, if you have any questions or concerns, please get in touch. In the meantime, here are a few links to additional resources:

Topics: Fair Lending, Banks, Lending Compliance, Nfairlending, Product Insight, Credit Unions, Compliance

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