Issue: Instance commenters which requested “safe ports” otherwise exemptions on insurance and financing opportunities, some commenters expected that advised laws end up being modified to include “safe slots” or exemptions regarding accountability to possess applications designed to manage sensible homes or renew established communities. Good commenter asked that final laws provide safe harbors to possess state and you will regional applications having genuine rules and safety requires such as protecting liquid resources, producing transportation focused development, and exciting organizations. Other commenters questioned safe harbors or exemptions to possess organizations that will be appointment standards otherwise standards built by government or county legislation otherwise regulation, including the Federal Borrowing Commitment Work, the new Dodd-Frank Act, HAMP and you may HARP, otherwise by the authorities-sponsored businesses otherwise investors.
HUD Reaction: HUD doesn’t believe that the latest ideal safe harbors otherwise exemptions out of discriminatory outcomes liability are appropriate otherwise needed. The quality hence understands that a practice are lawful even if it enjoys a beneficial discriminatory perception.
Issue: Multiple commenters expressed matter one into the conforming with the the brand new Dodd-Honest Work home loan reforms, including inside deciding one to people provides a capability to repay, a lender necessarily “have a tendency to face liability under the Suggested Signal.”
HUD cards then that Congress authored individuals exemptions regarding responsibility during the the text of your Work, which inside white of the and the Act’s essential corrective aim, extra exemptions might be as opposed to Congressional purpose
HUD Impulse: HUD reiterates the financial is free of charge to guard any accusations regarding unlawful discriminatory effects of the conference their burden off facts on § . Additionally, when the days were to develop in which a lender’s services so you can adhere to the fresh new Dodd-Frank Operate was basically challenged according to the Fair Housing Act’s discriminatory effects level of liability, men and women exact same issues probably might be at the mercy of an identical problem below ECOA and you will Control B, which also prohibit credit techniques having a good discriminatory impression oriented to your multiple protected features. The fresh Dodd-Frank Operate developed the Consumer Economic Safety Agency to fight one another unfair and inaccurate techniques and discriminatory methods on user economic industry, and it gave the consumer Economic Safeguards Bureau power so you can impose ECOA.Get a hold of Dodd-Honest Work sections 1402-1403 (enacting part 129B of your own Details within the Credit Act “to assure that ?ndividuals are given and you can discover residential mortgages towards terms you to relatively reflect their capability to settle brand new fund and this is actually readable rather than unjust, deceptive otherwise abusive,” and you will, as an element of one to part, demanding an individual Monetary Cover Agency to make laws that ban “abusive otherwise unjust lending practices that offer disparities certainly users off equivalent credit worthiness however, various competition, ethnicity, gender, otherwise ages”); find as well as Dodd-Frank Work point 1013(c) (starting the consumer Financial Defense Bureau’s Work environment from Fair Lending and you can Equivalent Opportunity to bring enforcement out-of fair financing laws, as well as ECOA, and you may accentuate reasonable lending perform inside Bureau and with most other federal and state businesses); id. section 1085 (moving regulating power to have ECOA into the Consumer Economic Safety Agency).
In keeping with HUD’s established Fair Homes Work legislation, that contain images regarding practices you to definitely break brand new Operate, the suggested laws specified most artwork of these methods. The new , code suggested to incorporate design in order to twenty four CFR , and you may . The final laws revises these types of illustrations or photos in how revealed less than.
HUD notes that, in the looking to this type of exemptions, the fresh commenters appear to misconstrue brand new discriminatory consequences basic, and therefore it allows means which have discriminatory consequences when they backed by a legitimately adequate justification
Since the visuals when you look at the HUD’s established legislation include techniques that violate the fresh new Work predicated on an intent otherwise consequences concept, and proposed § (b)(6) makes reference to make that is already blocked during the § (b)(4)-new supply from housing-relevant functions-and you can § iphone gay hookup apps (d)(4)-the provision regarding civil characteristics-this final laws removes suggested § (b)(6). This may avoid redundancy in HUD’s Reasonable Construction Operate laws and regulations, as well as removing about advised laws is not designed while the a substantive transform.
