By now, you’ve probably heard of the other decision recently handed down by the US Supreme Court. The Court ruled the theory of “disparate impact” may be applied under the Fair Housing Act in determining potential fair lending violations. What is “disparate Impact”? It’s the adverse effect of a practice or standard that is neutral and non-discriminatory in its intention…
Provident Funding Associates, a major California-based wholesale lender, recently settled with the Consumer Financial Protection Bureau and the Department of Justice to the tune of $9 million. The settlement was not for any violations made by Provident, but for lending discrimination by Brokers who originated loans for Provident. The discrimination came about in the form of higher rates being charged to…
