Andrea K. Mitchell quoted in Inside Mortgage Finance article, “ECOA rulemaking likely to limit the use of disparate impact”
Inside Mortgage FinanceAndrea K. Mitchell
Andrea K. Mitchell was quoted on October 29, 2018 in an Inside Mortgage Finance article, “ECOA rulemaking likely to limit the use of disparate impact,” which discussed the Consumer Financial Protection Bureau’s expected limit on the use of disparate-impact analysts. The article stated, “In an updated regulatory agenda, the CFPB said it is considering future rulemaking to reexamine the requirements of ECOA concerning the disparate-impact doctrine.”
Mitchell noted, “Based on what we’ve heard coming out of the bureau so far, we could view a disparate-impact rule as intended to confine or really limit the use of the theory under ECOA. If the CFPB does limit the use of disparate-impact analysis, originators would only need to manage the risk of disparate treatment, which is easier for lenders to manage because it results from discriminatory behavior.”
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