Disparate Impact. A disparate impact occurs when a lender applies a racially (or otherwise) neutral policy or practice Page 3 Federal Fair Lending Regulations and Statutes: Overview equally to all credit applicants but the policy or practice disproportionately excludes or burdens certain persons on a prohibited basis.

What is disparate treatment in mortgage lending?

Disparate treatment occurs when a lender treats a credit applicant differently based on one of the prohibited bases. It does not require any showing that the treatment was motivated by prejudice or a conscious intention to discriminate against a person beyond the difference in treatment itself.

What’s the difference between disparate treatment and disparate impact?

Both disparate impact and disparate treatment refer to discriminatory practices. Disparate impact is often referred to as unintentional discrimination, whereas disparate treatment is intentional. The terms adverse impact and adverse treatment are sometimes used as an alternative.

What is included in retrospective relief Fair Lending?

Retrospective injunctive relief may include relief for victims of past discrimination, actual and punitive damages, and offers or adjustments of credit or other forms of loan commitments.

What is disparate impact analysis?

Under a court’s “disparate impact” or “adverse impact” analysis, a plaintiff can prevail in a lawsuit by establishing an employer’s policy or practice affects members of the protected group so disproportionately that the court can infer discrimination from that impact.

Are credit cards covered by Reg B?

If a transaction provides for the deferral of the payment of a debt, it is credit covered by Regulation B even though it may not be a credit transaction covered by Regulation Z (Truth in Lending) (12 CFR part 1026). Regulation B generally does not apply to lending activities that occur outside the United States.

What is the difference between disparate impact and disparate treatment discrimination?

This includes disparate treatment and disparate impact. The difference between disparate impact and disparate treatment is that disparate treatment is intentional discrimination, while disparate impact is unintentional.

What is a fair lending policy?

Fair Lending Policy It is the policy of First Reliance Bank and its employees to adhere to all applicable fair lending laws and regulations, including, without limitation, the Equal Credit Opportunity Act and the Fair Housing Act.

What is lending discrimination?

Lending discrimination happens when a lender makes an adverse action against someone based on a protected class. Protected classes are groups protected from discrimination under the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act ( FHA ).