In a welcome development last week, the United States Supreme Court agreed to hear the case of Texas Department of Housing and Community Affairs v. Inclusive Communities Project. In hearing the case, the court will consider whether disparate impact claims are enforceable under the Fair Housing Act. Disparate impact is the lynchpin upon which the current administration has relied in determining and enforcing fair lending violations.
You’ll recall that two earlier cases were slated for consideration by the nation’s highest court, only to be scuttled at the last minute as the Justice Department and defendants reached out of court settlements. No such settlement is expected between the office of Texas Attorney General Greg Abbott and the Justice Department.
“We are thankful that, once again, the Supreme Court has agreed to consider this issue,” said IBAT President and CEO Chris Williston. “Too many lenders–and more importantly, small dollar borrowers–have been harmed by the rogue misapplication of disparate impact doctrine to fair lending enforcement. We are optimistic that the Supreme Court will ultimately put an end to this unfortunate regulatory practice.”
The Supreme Court hearing of the case will occur next year.
Staff contact: Shannon Phillips, firstname.lastname@example.org, 512-275-2221