News & Analysis as of

Consumer Financial Protection Bureau (CFPB) Disparate Impact

Alston & Bird

The End of Disparate Impact Liability?

Alston & Bird on

On April 23, 2025, President Trump signed an Executive Order entitled “Restoring Equality of Opportunity and Meritocracy,” which seeks to “eliminate the use of disparate-impact liability in all contexts to the maximum degree...more

Cooley LLP

Executive Order Seeks to Eliminate Federal Deployment of Disparate Impact Theory of Discrimination

Cooley LLP on

In an April 23 executive order titled, “Restoring Equality of Opportunity and Meritocracy,” the Trump administration declared it federal policy to eliminate the use of disparate impact liability “in all contexts to the...more

Frost Brown Todd

Trump’s New Executive Order Targeting Disparate Impact Liability May Target Fair Lending as Well

Frost Brown Todd on

On April 23, 2025, President Trump issued an executive order (EO) titled “Restoring Equality of Opportunity and Meritocracy,” which seeks to eliminate disparate impact liability, denouncing it as a threat to equal opportunity...more

Sheppard Mullin Richter & Hampton LLP

White House Executive Order Eliminates Disparate-Impact Liability Enforcement

On April 23, the White House issued an Executive Order entitled Restoring Equality of Opportunity and Meritocracy, directing federal agencies to “eliminate the use of disparate-impact liability in all contexts to the maximum...more

Troutman Pepper Locke

President Trump Issues Executive Order to Eliminate Disparate Impact Analysis

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President Donald J. Trump issued an executive order titled “Restoring Equality of Opportunity and Meritocracy.” This order aims to eliminate the use of disparate impact liability in all contexts, emphasizing the importance of...more

Troutman Pepper Locke

CFPB Releases Study on Differential Treatment of Black and White Small Business Owners Seeking Loans

Troutman Pepper Locke on

On November 13, the Consumer Financial Protection Bureau (CFPB or Bureau) released a pilot study titled “Matched-Pair Testing in Small Business Lending Markets” highlighting what the CFPB believes were two statistically...more

Sheppard Mullin Richter & Hampton LLP

US District Court Grants HUD’s Summary Judgment Motion in Disparate Impact Case

Ten years after the US Department of Housing and Urban Development (HUD) first promulgated its disparate impact rule (the Rule), on September 19, the US District Court for the District of Columbia granted HUD’s motion for...more

Sheppard Mullin Richter & Hampton LLP

Texas Court Strikes Down CFPB UDAAP Policy

On September 8, a Texas federal judge ruled that the CFPB exceeded its authority by adopting a sweeping anti-discrimination policy last year. The CFPB adopted the policy in March 2022, via an update to its exam manual,...more

Cadwalader, Wickersham & Taft LLP

Agencies Issue Proposed Interagency Guidance on Real Estate Appraisal Reconsiderations of Value

Last week, the Office of the Comptroller of the Currency (“OCC”), Federal Reserve Board (“FRB”), Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), and the Consumer Financial...more

Orrick, Herrington & Sutcliffe LLP

HUD restores 2013 discriminatory effects rule

On March 17, HUD announced the submission of a final rule—Reinstatement of HUD’s Discriminatory Effects Standard—which would rescind the agency’s 2020 regulation governing Fair Housing Act (FHA or the Act) disparate impact...more

Troutman Pepper Locke

FDIC Pursuing Disparate Impact Theory Against Auto Lenders Already Rejected by Congress

Troutman Pepper Locke on

On December 6, during the 2022 Interagency Fair Lending Webinar, David Evans, a senior fair lending specialist with the Federal Deposit Insurance Corporation (FDIC), discussed some of the specific discrimination issues...more

Troutman Pepper Locke

Fair Lending 101 for Debt Collectors - The Consumer Finance Podcast

Troutman Pepper Locke on

Please join Consumer Financial Services Partner Chris Willis and his guests and colleagues Stefanie Jackman and Sarah Reise as they discuss the intersection of fair lending with collections. They cover which types of...more

McGlinchey Stafford

CFPB prioritizes fair lending, machine learning, privacy in digital engagement

McGlinchey Stafford on

Members of the auto finance industry continue to have a strong appetite for developing their digital origination and servicing platforms. Much of the industry also has a desire to use data in novel and creative ways to...more

Jenner & Block

CFPB and other Federal Regulators Eye Regulation Aimed at Curbing Algorithmic Bias in Automated Home Valuations

Jenner & Block on

Late last month, the Consumer Financial Protection Bureau (CFPB) took another step toward adopting rules governing the use of artificial intelligence (AI) and algorithms in appraising home values. Specifically, the CFPB...more

Alston & Bird

CFPB’s SBREFA Outline on Automated Valuation Models Rekindles Debate over Disparate Impact Liability under the ECOA

Alston & Bird on

Section 1473(q) of the Dodd-Frank Act (now codified at 12 U.S.C. § 3354(q)) amended the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) to instruct the CFPB, Fed, OCC, FDIC, NCUA, and FHFA...more

Goodwin

CFPB Releases Report Analyzing Consumer Complaint Data By Demographics

Goodwin on

The Consumer Financial Protection Bureau (CFPB) issued its first in-depth report analyzing consumer complaint submission patterns by demographic characteristics. The CFPB’s findings were based on nearly 1 million...more

Bilzin Sumberg

An Opportune Time For Financial Institutions to Review Their Fair Lending Procedures

Bilzin Sumberg on

At the beginning of his term, President Biden declared that his administration would make it a policy to eliminate “racial bias and other forms of discrimination in all states of home-buying and renting.”...more

Hudson Cook, LLP

State Regulator Pursues Disparate Impact in Auto Finance

Hudson Cook, LLP on

Players in the auto finance industry have been watching the Consumer Financial Protection Bureau ping-pong over the last several years regarding disparate impact theories under the Equal Credit Opportunity Act. The disparate...more

Bradley Arant Boult Cummings LLP

Biden Administration Continues Fair Lending Efforts as HUD Announces Proposal to Restore the Discriminatory Effects Rule

One of the Biden administration’s first actions was a January 25, 2021, executive order on Redressing Our Nation’s and the Federal Government’s History of Discriminatory Housing Practices and Policies, whereby the White House...more

Hudson Cook, LLP

Fair Lending Developments: Disparate Impact Lives On

Hudson Cook, LLP on

[co-author: John Ropiequet] The fair lending cases filed by Miami against four major mortgage lenders, reported in several previous Annual Surveys, came to a sudden, anticlimactic end when the city voluntarily dismissed...more

Hudson Cook, LLP

CFPB Bites of the Month - March Top 10

Hudson Cook, LLP on

Each month, we host a 30-minute webinar outlining the month's key announcements and takeaways from the Consumer Financial Protection Bureau (CFPB) for financial services providers to consider. In this month's article, we...more

Bradley Arant Boult Cummings LLP

FTC’s Comment on ECOA and Regulation B Signals Continued Focus on Small Business Lending

Last year, the CFPB issued a notice and request for information on the Equal Credit Opportunity Act (ECOA) and Regulation B. Specifically, the CFPB sought “comments and information to identify opportunities to prevent credit...more

King & Spalding

The Implications of a Revived Disparate Impact Doctrine Under a Biden CFPB

King & Spalding on

Every change in presidential administration results in shifts to agencies’ policy priorities and enforcement efforts. In a Biden Administration, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”), in particular,...more

McGlinchey Stafford

9 Election Consequences Financial Services Clients Should Be Prepared For

McGlinchey Stafford on

If a change of administration transpires due to the upcoming election, here are some considerations that financial services companies should keep in mind. •Major philosophical differences exist between Biden and Trump on...more

Goodwin

SEC Stays Busy With Amendments And Extensions To Various Rules, Definitions And Disclosures

Goodwin on

In the News. The Securities and Exchange Commission (SEC) adopted final rules to update and expand the statistical disclosures that bank and savings and loan registrants must provide to investors for the first time in 30...more

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