ICBA is urging community bankers to tell the Department of Housing and Urban Development to amend its fair lending disparate-impact rule to meet the limitations imposed by the U.S. Supreme Court. Community bankers can use ICBA’s Be Heard grassroots resource center to send a customized message to HUD.
HUD is seeking public input on possible amendments to its 2013 rule, under which lenders may be held liable for neutral practices that have a disparate impact on certain classes of borrowers, even if the lenders have no intent to discriminate. In a 2015 decision, the high court held that disparate-impact cases cannot rely on statistics alone and must identify a specific policy that causes the perceived disparity.
ICBA’s custom message calls on HUD to align its rule with the court decision so community banks can make practical business choices and provide needed loans to customers.