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Category Archives: Fair Lending/Anti-Discrimination

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CFPB Releases Fair Lending Report to Congress

Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination, Mortgage Lending

By: Melanie Brody, Anjali Garg*

*Ms. Garg is a Law Clerk and is not admitted to practice law.

CFPB (the “Bureau”) released a report to Congress on its fair lending activities on April 30, 2014. The report highlights the activities of the Office of Fair Lending and Equal Opportunity from July 21, 2012 through December 31, 2013. It provides an overview of the Bureau’s supervision activities and highlights the data collection activities of the Bureau in the areas of mortgage lending, auto finance, and other credit markets.

K&L Gates Consumer Financial Services Group to Present at MBA Legal Issues Conference in San Diego

Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination, FHA/VA, Litigation & Enforcement Actions, Mortgage Lending, Mortgage Servicing, Other Federal Agencies & GSEs

On May 4-7, 2014 the Mortgage Bankers Association will hold its annual Legal Issues and Regulatory Compliance Conference in San Diego, CA. Several K&L Gates partners from the Consumer Financial Services Group will be presenting at the conference.

5th Circuit Applies HUD Discriminatory Effects Rule to Fair Housing Act Case

Posted in Fair Lending/Anti-Discrimination, Litigation & Enforcement Actions, Mortgage Lending

By: Melanie Brody, Anjali Garg*

*Ms. Garg is a law clerk and is not admitted to practice law.

On March 24, 2014, the Fifth Circuit issued an opinion in Inclusive Communities Project, Inc. v. Texas Department of Housing and Community Affairs applying HUD’s discriminatory effects rule and burden-shifting analysis to a Fair Housing Act claim.

Federal Regulators Alleviate Fair Lending Concerns Regarding QM Origination

Posted in Fair Lending/Anti-Discrimination, Mortgage Lending

By: Stephanie C. Robinson, Andrew L. Caplan

Recognizing that many creditors will be inclined to originate only “qualified mortgages” (“QM loans”) when the CFPB’s ability-to-repay rule takes effect in January, five federal regulators yesterday announced that a creditor’s decision to offer only QM loans will not elevate the creditor’s fair lending risk, absent other factors.

Township of Mount Holly: The United States Supreme Court Considers Whether the Fair Housing Act Recognizes Disparate-Impact Liability

Posted in Fair Lending/Anti-Discrimination, Litigation & Enforcement Actions, Mortgage Lending

By: Paul F. Hancock, Andrew C. Glass, Melanie Brody, John L. Longstreth, Roger L. Smerage

On September 3, 2013, K&L Gates LLP filed a brief as amici curiae before the United States Supreme Court in Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc., a case in which the Court will consider whether the Fair Housing Act recognizes a disparate-impact theory of liability.

Supreme Court Takes Mount Holly Disparate Impact Case

Posted in Fair Lending/Anti-Discrimination, Litigation & Enforcement Actions, Mortgage Lending, Mortgage Servicing, Other Federal Agencies & GSEs

By: Stephanie C. Robinson

Today, the Supreme Court granted certiorari in the appeal titled Township of Mount Holly, New Jersey v. Mt. Holly Gardens Citizens in Action, Inc., et al., No. 11-1507, agreeing to consider whether the Fair Housing Act allows claims under the disparate impact theory of discrimination.

Solicitor General Urges Supreme Court to Reject Mt. Holly Case; Argues No Review Is Needed as to Whether the Fair Housing Act Recognizes Disparate Impact Claims

Posted in Fair Lending/Anti-Discrimination, Litigation & Enforcement Actions, Mortgage Lending, Mortgage Servicing, Other Federal Agencies & GSEs

By: Andrew C. Glass and Roger L. Smerage

In an increasingly complex battle among the branches of the federal government, the Solicitor General recently urged the Supreme Court to deny certiorari in the appeal titled Township of Mount Holly, New Jersey v. Mt. Holly Gardens Citizens in Action, Inc., et al., No. 11-1507.

Regulators Highlight Hot Topics in Fair Lending: Are You Ready?

Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination

By: Elena Grigera Babinecz

This week the Non-Discrimination Working Group of the Financial Fraud Enforcement Task Force sponsored a webinar highlighting emerging fair lending issues and hot topics that financial institutions should be aware of as regulatory agencies continue to focus their attention on discrimination in the housing and finance markets.

DOJ Doubles Down on Disparate Impact, Settles Discriminatory Pricing Case with SunTrust Mortgage

Posted in Fair Lending/Anti-Discrimination, Litigation & Enforcement Actions, Mortgage Lending

By: Melanie Hibbs BrodyDavid G. McDonough, Jr.

The Department of Justice recently announced a $21 million settlement with SunTrust Mortgage over allegations that SunTrust’s neutral and non-discriminatory policy of granting loan originators discretionary pricing authority somehow resulted in loans to minority borrowers to be priced higher than loans to White borrowers

Supreme Court Case on Disparate Impact Voluntarily Dismissed – Parties in Magner v. Gallagher Say Never Mind

Posted in Fair Lending/Anti-Discrimination, Mortgage Lending, Other Federal Agencies & GSEs

By: Melissa S. Malpass

In a rare and unexpected move, the City of St. Paul last Friday agreed to dismiss its appeal to the U.S. Supreme Court challenging whether a violation under the Fair Housing Act may be proved under a disparate impact legal theory, or whether proof of intentional discrimination is required.

Mortgage Industry Submits Comments on HUD’s Proposed Disparate-Impact Rule under the Fair Housing Act

Posted in Fair Lending/Anti-Discrimination, Mortgage Lending, Other Federal Agencies & GSEs

By: Paul F. Hancock, Andrew C. Glass, Melanie Hibbs Brody, Roger L. Smerage, Melissa S. Malpass, Gregory N. Blase

On January 17, 2012, K&L Gates LLP submitted the comments of six financial services trade associations to the United States Department of Housing and Urban Development (HUD) on the proposed rule to implement a disparate-impact legal standard under the Fair Housing Act.

CFPB to Payday Lenders: We’re Coming for You – Cordray Tells Payday Lenders to Expect “Much More Attention” and Releases New Examination Guidelines for the Industry; Many Questions Left Unanswered

Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination, UDAAP

By: David G. McDonough, Jr.

Payday lenders recently received their first peek at what life will be like under the CFPB’s watch, and it’s not a pretty picture.

CFPB Releases “Mortgage Origination Examination Procedures” Governing Banks and Nonbanks – Not a Prelude to a Kiss

Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination, Mortgage Lending, Other Federal Agencies & GSEs, Privacy & Information Security, UDAAP

By: Jonathan D. Jaffe

The CFPB wants to get to know you – well. But it’s not a prelude to a kiss.

On January 12, 2012, the CFPB released its new Mortgage Origination Examination Procedures Governing Banks and Nonbanks (the “Procedures”).

CFPB Puts Inherited Consumer Financial Protection Regulations on the Table

Posted in Bureau of Consumer Financial Protection (CFPB), Credit Cards, Fair Lending/Anti-Discrimination, Mortgage Lending, Mortgage Servicing, Payment Systems, Privacy & Information Security

By: David A. Tallman

Adding to its already full plate, the Bureau of Consumer Financial Protection (the “CFPB” or the “Bureau”) recently requested public comment on its review of the various consumer financial protection regulations it has inherited from other agencies.

HUD’s Proposed Fair Lending Rule: Deadline for Comments

Posted in Fair Lending/Anti-Discrimination, Other Federal Agencies & GSEs

By: Melissa S. Malpass

On November 16, 2011 the United States Department of Housing and Urban Development (“HUD”) released a proposed rule to establish that proof of intentional discrimination is not necessary to establish a violation of the Fair Housing Act, and that a violation may be established under a disparate impact approach.