Issue: Eg commenters which requested “safe harbors” otherwise exemptions to your insurance policies and you will financing areas, some commenters questioned that suggested laws feel modified to add “safe ports” or exemptions out of responsibility for applications made to preserve affordable houses or rejuvenate present communities. A great commenter questioned that the finally rule promote secure slots getting state and you can local applications with genuine plan and you can shelter goals for example securing liquid tips, creating transit focused invention, and you may revitalizing communities. Most other commenters requested secure slots or exemptions to own agencies which might be fulfilling criteria otherwise requirements centered of the federal otherwise state rules otherwise regulation, like the Federal Borrowing Relationship Operate, the fresh new Dodd-Honest Act, HAMP and you may HARP, otherwise from the authorities-paid businesses or buyers.

HUD Impulse: HUD cannot accept that the newest suggested safer slots otherwise exemptions regarding discriminatory effects responsibility work otherwise necessary. The product quality for this reason understands that a habit may be lawful actually if this enjoys a beneficial discriminatory effect.

Issue: Numerous commenters conveyed matter one to during the complying on the this new Dodd-Honest Work mortgage reforms, along with for the deciding one to people have an ability to pay back, a loan provider necessarily “usually face responsibility according to the Recommended Signal.”

HUD notes next you to Congress created various exemptions away from liability for the what of your own Act, which from inside the white of the in addition to Act’s essential corrective motives, more exemptions will be in comparison to Congressional purpose

HUD Reaction: HUD reiterates the bank is free of charge to protect any allegations of unlawful discriminatory consequences by the conference their weight from research on § . More over, when the times was to arise where good lender’s services to adhere to the brand new Dodd-Honest Work were confronted according to the Reasonable Housing Act’s discriminatory consequences level of responsibility, those individuals same circumstances probably was subject to a comparable difficulties not as much as ECOA and you can Controls B, that can prohibit lending strategies with an excellent discriminatory perception dependent towards multiple secure properties. The fresh Dodd-Honest Work developed the Individual Economic Safeguards Agency to fight both unfair and you may deceptive techniques and discriminatory practices throughout the individual monetary industry, also it offered the user Monetary Protection Agency authority to help you impose ECOA.Look for Dodd-Honest Act sections 1402-1403 (enacting section 129B of the Specifics in the Financing Operate “in free bbw hookup order to guarantee that individuals are offered and discover home-based mortgages towards conditions you to fairly echo their ability to settle the latest loans which are understandable and not unfair, misleading otherwise abusive,” and you can, as an element of you to area, demanding an individual Economic Coverage Agency to make regulations one ban “abusive otherwise unfair financing techniques one bring disparities certainly users of equal credit history but of various competition, ethnicity, sex, or decades”); get a hold of in addition to Dodd-Honest Operate part 1013(c) (setting-up the user Economic Coverage Bureau’s Work environment out of Fair Credit and you will Equivalent Possible opportunity to offer enforcement out of fair financing regulations, along with ECOA, and you will enhance reasonable credit operate in Agency and with most other federal and state enterprises); id. area 1085 (moving regulatory authority to have ECOA into the Consumer Financial Cover Agency).

In keeping with HUD’s established Reasonable Casing Act statutes, that contain images out of methods you to violate the new Work, the fresh proposed code given even more graphics of these practices. The , laws proposed to incorporate pictures so you can twenty four CFR , and you may . The final signal revises these types of images in the manner revealed lower than.

HUD cards you to, into the trying to these types of exemptions, the brand new commenters seem to misconstrue new discriminatory consequences basic, and therefore it permits techniques which have discriminatory outcomes if they are supported by a legally enough justification

Given that pictures for the HUD’s existing laws are strategies that will break this new Operate based on an intention otherwise outcomes idea, and recommended § (b)(6) refers to run that is already blocked for the § (b)(4)-the brand new provision regarding property-relevant properties-and you may § (d)(4)-the brand new provision off civil services-so it latest signal eliminates advised § (b)(6). This may prevent redundancy for the HUD’s Fair Houses Act regulations, as well as reduction from the recommended code is not implied as a beneficial substantive change.