Issue: Such as for example commenters who asked “safer harbors” otherwise exemptions on the insurance and you may financing areas, particular commenters requested the advised laws be revised to add “safe slots” or exemptions off accountability to possess apps made to uphold reasonable property otherwise revitalize established communities. A commenter expected that the last laws give safe harbors to possess state and you can local applications which have genuine plan and protection requires such protecting h2o information, creating transit focused innovation, and you may revitalizing groups. Almost every other commenters expected secure slots otherwise exemptions to own agencies that will be conference criteria otherwise standards based because of the government otherwise county legislation otherwise controls, like the Government Borrowing Union Operate, the brand new Dodd-Frank Act, HAMP and HARP, or of the regulators-paid businesses otherwise traders.
HUD Reaction: HUD cannot accept that the brand new suggested safer harbors otherwise exemptions from discriminatory effects accountability are appropriate or called for. The high quality for this reason understands that a habit are legal also in the event it keeps good discriminatory impression.
Issue: Numerous commenters expressed matter you to inside the complying towards the new Dodd-Frank Work financial reforms, and additionally in determining one to customers have an ability to pay off, a loan provider always “commonly face responsibility under the Advised Laws.”
HUD cards after that you to definitely Congress created some exemptions out-of liability in the text of Work, hence into the white associated with the additionally the Act’s crucial remedial purposes, additional exemptions is in contrast to Congressional intention
HUD Response: HUD reiterates the lender is free of charge to guard people accusations of illegal discriminatory effects of the appointment its load out of research on § . Additionally, in the event that era was to arise where an excellent lender’s perform so you can comply with the Dodd-Frank Act have been confronted under the Reasonable Construction Act’s discriminatory outcomes amount of accountability, those exact same things probably was susceptible to an equivalent difficulties under ECOA and you may Control B, that also exclude financing practices with an effective discriminatory feeling based on the multiple safe properties. The new Dodd-Honest Operate created the Consumer Economic Shelter Bureau to fight one another unjust and you will misleading strategies and you may discriminatory practices about consumer economic industry, plus it offered an individual Economic Protection Agency expert so you’re able to demand ECOA.Look for Dodd-Frank Operate areas 1402-1403 (enacting point 129B of your Truth for the Financing Act “in order to guarantee you to people are given and you may found domestic mortgage loans to the terms one to relatively mirror their capability to settle this new financing and therefore is actually understandable and not unjust, misleading or abusive,” and you will, included in you to point, demanding an individual Economic Security Agency to produce laws and regulations one exclude “abusive otherwise unjust financing means that provide disparities certainly users regarding equal credit worthiness but of different competition, ethnicity, intercourse, or decades”); discover plus Dodd-Honest Act part 1013(c) (installing the https://datingranking.net/ios-hookup-apps/ consumer Financial Shelter Bureau’s Office regarding Fair Financing and you will Equal Chance to promote administration out-of fair credit laws, along with ECOA, and you will enhance reasonable credit jobs inside Bureau in accordance with other state and federal companies); id. section 1085 (mobile regulating expert getting ECOA to your Consumer Monetary Safeguards Bureau).
Consistent with HUD’s established Fair Housing Operate legislation, containing photos regarding techniques one to violate the fresh Act, the suggested signal specified most graphics of these methods. The fresh , rule recommended to provide visuals to twenty-four CFR , and you may . The final code revises these artwork in the way discussed less than.
HUD notes you to, when you look at the trying such exemptions, the commenters frequently misconstrue the latest discriminatory outcomes fundamental, and therefore it permits means having discriminatory consequences when they supported by a lawfully enough reason
As layouts when you look at the HUD’s established statutes include methods that will violate brand new Act based on a purpose otherwise effects idea, and suggested § (b)(6) identifies perform that is currently prohibited during the § (b)(4)-this new supply out of casing-related functions-and you may § (d)(4)-the latest provision out-of municipal functions-that it last code takes away proposed § (b)(6). This will end redundancy when you look at the HUD’s Fair Houses Act laws and regulations, as well as elimination on the advised code is not required given that a great substantive transform.
