The Department of Housing and Urban Development issued a final rule clarifying what it considers its long-standing policy of enforcing the Federal Housing Act and Equal Credit Opportunity Act under the “disparate impact” theory of liability. This means that a lender or other defendant could be found liable for discrimination if its practices disproportionately affect persons or groups on a prohibited basis even if there is no evidence of any discriminatory intent. The rule follows a similar declaration last April by the CFPB.

See CBA’s Regulatory Compliance Bulletin for more information.