HUD proposes to restore Obama fair lending rules



WASHINGTON – The Department of Housing and Urban Development has officially proposed repealing the Trump administration’s fair lending rule and reinstating the Obama-era ruling that set a lower bar for plaintiffs alleging discrimination.

HUD said in a Friday press release that the 2013 rule does a better job with the statutory goal of “eradicating unreasonable discriminatory practices” in the housing market than the version the department finalized last year.

“It’s a new day at HUD – and our department is working to remove barriers to housing and promote diverse, inclusive communities across the country,” HUD Secretary Marcia Fudge said in a press release. “Today’s publication of the proposed discriminatory impact rule is the latest step that HUD is taking to fulfill its duty to provide fairer and more equitable housing.”

Housing and Urban Development Minister Marcia Fudge is seeking to re-establish the fair credit rule that was loosened under former HUD Secretary Bene Carson.

Scattered influence, a legal doctrine that allows lenders to lend fairly even if their lending policies were unintentionally discriminatory, has received more support from the Obama administration than its Trump-era successor. This doctrine has long been unpopular with financial institutions, and banks generally supported a proposal by former HUD Secretary Ben Carson, which suggested raise the legal bar for plaintiffs alleging discrimination under the Fair Housing Act.

However, the big banks have called on the Trump administration postpone your plan last year after the assassination of George Floyd by police, which sparked a national dialogue on racial equality.

The Biden administration was first revealed in April. what was he planning abolish the Trump administration’s scattered rule in favor of an earlier Obama-era reign.

The 2013 Rule that HUD is proposing to reinstate states that if a policy has a discriminatory effect on a protected class, it is illegal unless it serves a “material, legitimate, non-discriminatory interest.”

“The 2020 rule complicated this analysis by adding new safeguards, new evidence requirements and new safeguards that made it difficult to establish that a policy was in violation of the Fair Housing Act,” the department said in a press release. “The HUD is now suggesting a return to direct analysis of the 2013 rule.”

HUD will accept comments on the proposal within 60 days of posting it on the Federal Register.


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