The newest statutes and you can Teams Remarks implementing ECOA together with explicitly ban unjustified discriminatory effects
HUD Response: HUD will not believe that new laws will have an effective chilling impact on credit during the low income organizations or that it’ll remind lawsuits difficult fico scores, most other credit score assessment requirements, or even the requirements of the Dodd-Frank Work. Due to the fact talked about more than, the latest laws does not alter the substantive laws; 11 federal process of law of appeals have recognized discriminatory consequences liability significantly less than the fresh new Operate as well as the years courts provides examined one another meritorious and non-meritorious discriminatory consequences claims problematic lending practices. Since HUD provides reiterated, the brand new laws formalizes a great substantive courtroom fundamental that’s famous from the each other courts and you can participants on lending world having evaluating claims from discriminatory outcomes. Actually, regarding credit framework, at the least since the issuance of Mutual Coverage Statement nearly 18 in years past, non-depository loan providers, banking institutions, thrifts, and you will credit unions have been towards see that government regulatory and enforcement enterprises, also HUD and the Agency out of Fairness, inations and you can investigations under both Reasonable Casing Work and ECOA.
