The proposed regulation from the U.S. Department of Housing and Urban Development would replace an Obama-era rule on disparate impact, … HUD's proposed "disparate impact" rule would amend an Obama-era regulation barring lenders, landlords and others in the housing industry from … Although HUD’s proposed rule appears to benefit defendants, the rule imposes additional layers of complexity to the burden-shifting analysis. Specifically, the proposed rule … In the proposed rule, HUD provides several detailed examples of particular defenses a defendant may use to rebut allegations of housing discrimination. The proposed rule also contains several clarifications related to issues such as vicarious liability, the rule’s impact on state insurance regulations, and the scope of remedies in state and federal court, among others.Our Financial Services Litigation and Compliance Team offers the full spectrum of legal services to banks, bank holding companies, mortgage servicers, home mortgage lenders, and other consumer finance companies.The theory of disparate impact liability has always been complicated. To do this, HUD is proposing to add five elements that must be included in disparate impact claims under the FHA.
The United States Department of Housing and Urban Development (HUD) released a sweeping proposed rule on August 1 seeking to amend HUD’s interpretation of the Fair Housing Act’s disparate impact standard. The U.S. Department of Housing and Urban Development (HUD) is seeking feedback on a proposed rule to amend the HUD interpretation of the Fair Housing Act’s disparate impact standard.. Thus, while the proposed rule likely will come as welcome relief to businesses that have been vulnerable to disparate impact claims, it will likely not decrease the number of fair housing claims and may very well increase the cost to defend those claims. HUD released an advance notice of proposed rulemaking in the Federal Register on June 20, seeking public comment on possible amendments to HUD’s 2013 final rule implementing the Fair Housing Act’s disparate impact standard to ensure the rule is consistent with the U.S. Supreme Court decision in Texas Department of Housing and Community Affairs v. HUD’s proposed rule seeks to align the department’s disparate impact analysis with the standards applied by the court in Inclusive Communities. The proposed rule as amended (and submitted to the federal register today) would provide more appropriate guidance on what constitutes unlawful disparate impact to better reflect the Supreme … The Trump Administration’s Department of Housing and Urban Development (HUD) announced a rule change to eviscerate a long-standing civil rights protection known as “disparate impact” and are accepting comments until October 18 th.HUD’s proposed rule, published in the federal register, would make it far more difficult to challenge discriminatory practices that are not blatant or … All Rights Reserved
Specifically, plaintiffs would be required to plead that a challenged practice is arbitrary, artificial and unnecessary; to allege a “robust causal link” between the challenged policy or practice and the disparate impact; to explain how the challenged policy or practice has a harmful effect on a protected class; to allege that a disparity is significant; and finally, to allege that an injury is directly caused by the challenged policy or practice.© Copyright 2015-2019, American Bankers Association.
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