CFPB leader not backing down on lending discrimination cases

Julie C. Nichols General

HousingWire – Kerri Ann Panchuk

Unless the U.S. Supreme Court steps in, the Consumer Financial Protection Bureau will continue to view disparate impact as the appropriate legal theory to use when filing lending discrimination cases against banks. The bureau’s Director Richard Cordray was not shy about revealing this standard as the bureau’s benchmark when a lending discrimination case surfaces.

In prepared remarks for the American Banker Regulatory Symposium, Director Cordray reiterated his agency’s push to combat lending discrimination, as well as his unyielding support for giving these cases the “disparate impact" treatment. Under this theory, it doesn’t matter whether a lender intends to discriminate against a borrower or not.

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