Issue: Like commenters whom requested “secure slots” otherwise exemptions on insurance policies and you can financing markets, some commenters expected your proposed laws be changed to provide “safer slots” or exemptions out of accountability for software made to keep affordable housing otherwise revitalize existing groups. Good commenter asked your last laws provide secure ports getting county and you can regional apps which have genuine coverage and you can security needs instance securing h2o information, generating transit focused invention, and you will revitalizing groups. Almost every other commenters requested safer harbors or exemptions having entities that will be meeting requirements or standards dependent by the government or county law otherwise control, for instance the Federal Credit Partnership Work, the fresh new Dodd-Honest Work, HAMP and HARP, or because of the authorities-sponsored enterprises or people.
HUD Response: HUD doesn’t believe that brand new ideal secure ports otherwise exemptions away from discriminatory outcomes liability are appropriate otherwise required. The high quality therefore understands that a practice may be legitimate even whether it provides a beneficial discriminatory impression.
Issue: Several commenters shown matter you to within the conforming towards the new Dodd-Frank Operate mortgage reforms, and for the determining one to consumers possess an ability to pay back, a lender always “commonly deal with responsibility under the Suggested Signal.”
HUD cards after that one to Congress written some exemptions out of liability when you look at the what of the Work, which for the light for the plus the Act’s very important remedial purposes, additional exemptions might possibly be in comparison to Congressional intent
HUD Response: HUD reiterates that the lender is free to protect people allegations away from illegal discriminatory consequences of the meeting their weight regarding evidence in the § . Additionally, when the times would be to arise in which a good lender’s jobs to follow this new Dodd-Honest Act was in fact confronted within the Reasonable Property Act’s discriminatory outcomes degree of responsibility, those same points probably is subject to the same difficulty not as much as ECOA and you may Regulation B, that can exclude financing practices with a great discriminatory feeling established with the several secure characteristics. The fresh new Dodd-Honest Act created the Individual Economic Cover Bureau to combat one another unjust and you will deceptive practices and discriminatory strategies regarding consumer economic industry, and it also gave an individual Financial Shelter Bureau power to demand ECOA.Pick Dodd-Frank Operate parts 1402-1403 (enacting part 129B of Specifics for the Lending Operate “to assure that consumers are provided and found domestic mortgages towards the words one reasonably reflect their ability to settle new finance and that are understandable and not unjust, deceptive otherwise abusive,” and you will, included in one part, requiring the consumer Financial Protection Agency in order to make rules that prohibit “abusive otherwise unfair lending methods you to bring disparities one of users regarding equivalent credit history however, various battle, ethnicity, gender, otherwise years”); pick and Dodd-Frank Work section 1013(c) (establishing an individual Economic Shelter Bureau’s Workplace out-of Reasonable Lending and you will Equivalent Possible opportunity to render enforcement regarding reasonable credit laws, also ECOA, and you will enhance reasonable financing services inside Bureau and with almost every other federal and state firms); id. section 1085 (transferring regulating power getting ECOA on Consumer Economic Coverage Agency).
Consistent with HUD’s current Reasonable Houses Work legislation, which contain illustrations or photos off methods one to violate the newest Operate, the newest recommended laws given additional images of these methods. The fresh , laws suggested to add visuals to 24 CFR , and . The last code revises these artwork in the way demonstrated lower than.
HUD cards you to definitely, when you look at the trying to these types of exemptions, the newest commenters appear to misconstrue the new discriminatory outcomes basic, and therefore it permits strategies having discriminatory outcomes if they’re supported by a legitimately sufficient excuse
Given that visuals inside the HUD’s existing legislation are practices which can violate the new Act considering a purpose or outcomes concept, and you can advised § (b)(6) identifies make that’s currently prohibited in the § (b)(4)-new supply regarding housing-associated attributes-and you https://hookupdaddy.net/bbw-hookup/ may § (d)(4)-the fresh provision off civil attributes-that it finally signal eliminates recommended § (b)(6). This may avoid redundancy into the HUD’s Reasonable Housing Work legislation, and its own elimination from the proposed signal isn’t implied as the a good substantive alter.