The U.S. Court of Appeals for the Fifth Circuit rejected arguments that would have expanded the scope of liability under the Equal Credit Opportunity Act for lenders, or other participants, in the secondary mortgage market. The authors of this article explain the court’s ruling.

In a published opinion, the U.S. Court of Appeals for the Fifth Circuit rejected arguments that would have expanded the scope of liability under the Equal Credit Opportunity Act (“ECOA”),1 for lenders, or other participants, in the secondary mortgage market. The case is Alexander v. AmeriPro Funding, Inc.2 The appeal was from the dismissal of all of the plaintiffs’ claims under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim.

Originally published in the The Banking Law Journal.