US Department of Justice Turns Spotlight on Disparate Impact Discrimination Claims

September 20, 2012
In addition to the regulatory burdens imposed by the Dodd-Frank Act, financial institutions must now adjust to the potential of new discrimination claims based on the effects that statistics suggest, rather than an actual intent to discriminate. This update examines the U.S. Department of Justice’s recent settlement with Luther Burbank Savings to resolve disparate impact discrimination claims under the FHA and ECOA based on a minimum loan amount policy used by the institution.