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Is Disparate Impact Protection For Lenders On The Horizon?

Law360, New York (November 18, 2014, 10:45 AM EST) -- Since the 1970s, courts have routinely held that the Fair Housing Act, 42 U.S.C. §§ 3601 et seq., may remedy housing discrimination proven through use of the disparate impact theory. The doctrine of disparate impact permits a finding of discrimination without a "showing of discriminatory intent," provided the defendant's actions produce a disproportionate and adverse effect on persons with protected traits. Metropolitan Housing Development Corp. v. Village of Arlington Heights, 558 F.2d 1283, 1290 (7th Cir. 1977). At least 11 United States Courts of Appeals have affirmed the applicability of the disparate impact theory to the Fair Housing Act....

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