Breaking News! Insurers sue HUD regarding disparate impact

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Explore:  Disparate Impact FHA HUD

We just heard that a lawsuit was filed in Federal District Court in DC challenging HUD’s final rule stating that the disparate impact theory will apply in assessing whether a company has complied with the Fair Housing Act. Here is the complaint. The outcome of this case could result in a court holding that the disparate impact theory does not apply under the Equal Credit Opportunity Act as well. The CFPB has been applying the theory in its examinations and investigations. We will provide more information after we have studied the complaint in detail.

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FHA
HUD

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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