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Fair housing groups sue CFPB over rule change removing disparate impact lending protections

By

Michael Casey

3d ago· 4 min readenNews

Summary

Fair housing organizations have filed a federal lawsuit in Washington, D.C., challenging a rule change by the Consumer Financial Protection Bureau (CFPB) under the Trump administration. The lawsuit argues that the change to the Equal Credit Opportunity Act would reverse decades of lending protections by removing the requirement for lenders to consider "disparate impact" — policies that appear neutral but disproportionately harm Black, Latino, and other minority groups. The plaintiffs contend this opens the door to increased discrimination in lending.

Key quotes

· 3 pulled
Fair housing organizations filed a lawsuit Wednesday over a federal rule change that they say would reverse decades of lending protections and open the door to discrimination against Black people, Latinos and other minorities.
The federal lawsuit, filed in Washington, D.C., takes aim at a change made earlier this year by the Consumer Financial Protection Bureau to the Equal Credit Opportunity Act, which bars lenders from discriminating against credit applicants.
Plaintiffs are challenging a change that wouldn't require lenders to consider 'disparate impact' — policies that appear neutral but tend to cause disproportionate harm to certain groups.
Snippet from the RSS feed
Fair housing groups have filed a lawsuit over a rule change by the Trump administration that they allege reverses decades of lending protections and opens the door to discrimination against Black people, Latinos and other minorities. The federal lawsuit w

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