Archive: 30 May 2013

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Fair Lending with a Twist: Discrimination Against White Males
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Was Chicken Little an Optimist?

Fair Lending with a Twist: Discrimination Against White Males

By: Melanie Brody, Tori K. Shinohara

A Maryland-based community bank recently was the target of an OCC enforcement action alleging that the bank discriminated against white men. Specifically, the OCC alleged that First Community Bank discriminated on the basis of race and sex by imposing a ceiling on loan compensation paid by female and minority borrowers, but not by other borrowers. The Bank settled and agreed to make restitution to the aggrieved borrowers. Read More

Was Chicken Little an Optimist?

By: Jonathan D. Jaffe , Kristie D. Kully , David A. Tallman,  Andrew L. Caplan , Eric Mitzenmacher

The Consumer Financial Protection Bureau (“CFPB”) issued a true game changer on January 10, 2013, with its Ability to Repay and Qualified Mortgage Rule (the “Final Rule” or the “Rule”). Some industry observers seem to consider Chicken Little an optimist—not only is the sky falling, but the earth is trembling and the seas boiling. But everyone appears to agree that the Rule has caused the ground to shift beneath our feet. As we describe in this Client Alert, the Final Rule will almost certainly result in fewer borrowers qualifying for mortgages, and will likely result in higher interest rates for many who do qualify.

To read the full alert, click here.

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