Event Type: Webinar
Thursday, July 30, 2015
12:00 p.m. ET // 9:00 a.m. PT
Webinar Length: 60 Minutes
The Consumer Financial Protection Bureau (CFPB) has been aggressively asserting disparate impact liability claims under the Equal Credit Opportunity Act. CFPB examinations and investigations have mortgage, auto, and other lenders worried about their exposure. This webinar will explain what the decision in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. means for you.
- The Supreme Court’s Decision upheld disparate impact liability under the Fair Housing Act, but also emphasized a “robust causality requirement” to establish a prima facie case
- CFPB’s fair lending examinations and investigations will continue full steam ahead, but the causality requirement gives lenders new ways to push back on the agency’s legal theories
- Apart from the causality requirement, CFPB’s claims against indirect auto lenders remain vulnerable because it is hard to prove harm when car sales involve so many other variables
- More complaints will be filed with the Department of Housing and Urban Development and/or the Department of Justice against banks and non-banks that originate or service Federal Housing Administration-insured loans. Similar actions will be taken against the vendors that provide services on behalf of these institutions, claiming discriminatory practices under a disparate impact theory; for example, in how it executes foreclosure services for which our clients could be liable.