Issue: Such as for example commenters whom asked “safer ports” or exemptions with the insurance rates and financing markets, particular commenters asked that proposed rule getting changed to add “safe slots” or exemptions out of accountability getting programs built to uphold reasonable casing or renew current organizations. A great commenter expected that final laws provide secure slots having county and you will local software with genuine plan and you will safeguards needs including securing liquid info, promoting transportation orientated advancement, and you can exciting groups. Other commenters asked safer slots or exemptions to have agencies which can be fulfilling standards otherwise conditions dependent because of the government or county law or controls, including the Federal Borrowing from the bank Connection Operate, the fresh new Dodd-Honest Operate, HAMP and you will HARP, otherwise by government-paid enterprises or investors.

HUD Impulse: HUD doesn’t accept that the ideal safer harbors otherwise exemptions off discriminatory outcomes responsibility work or called for. The product quality thus understands that a practice is lawful actually when it keeps an effective discriminatory feeling.

Issue: Multiple commenters expressed concern one inside complying with the the Dodd-Honest Act mortgage reforms, also in deciding that people provides a capability to pay off, a loan provider fundamentally “usually deal with liability underneath the Advised Code.”

HUD cards subsequent one to Congress composed certain exemptions of responsibility during the the language of one’s Operate, which into the light in the therefore the Act’s extremely important corrective motives, more exemptions could be in comparison to Congressional purpose

HUD Response: HUD reiterates your lender is free of charge to protect people accusations of illegal discriminatory outcomes of the appointment their load regarding facts during the § . Moreover, if instances were to happen where an excellent lender’s work so you’re able to conform to the brand new Dodd-Honest Work have been confronted underneath the Reasonable Property Act’s discriminatory outcomes standard of responsibility, those people exact same activities most likely was susceptible to an equivalent difficulty under ECOA and you may Controls B, which also ban credit means with a beneficial discriminatory impression established on the numerous protected properties. The fresh Dodd-Frank Operate created the Consumer Financial Safeguards Agency to fight both unjust and you can inaccurate techniques and you may discriminatory means throughout the consumer economic community, plus it offered the consumer Economic Safety Bureau power so you’re able to impose ECOA.Come across Dodd-Honest Operate areas 1402-1403 (enacting point 129B of your own Knowledge during the Lending Work “in order to guarantee one ?ndividuals are offered and found residential mortgages on the words you to fairly mirror their ability to settle this new loans which is actually understandable rather than unfair, inaccurate otherwise abusive,” and you may, as part of you to area, demanding an individual Monetary Defense Agency to manufacture legislation that prohibit “abusive otherwise unjust financing practices one to provide disparities among users regarding equivalent credit worthiness but of different battle, ethnicity, gender, or decades”); get a hold of including Dodd-Honest Act point 1013(c) (setting-up the consumer Economic Cover Bureau’s Place of work away from Reasonable Credit and Equivalent Possible opportunity to render administration away from reasonable credit regulations, also ECOA, and you will accentuate reasonable lending services in Agency in accordance with other federal and state businesses); id. area 1085 (move regulatory authority getting ECOA towards the Consumer Economic Defense Agency).

Consistent with HUD’s present Reasonable Housing Work guidelines, that have photos from techniques one to violate new Work, the latest suggested laws specified extra graphics of these means. The fresh , rule advised to add photos so you’re able to twenty four CFR , and you will . The past rule revises this type of graphics in the way explained lower than.

HUD cards you to, from inside the trying such exemptions, the fresh commenters frequently misconstrue new discriminatory consequences practical, and this it permits means that have discriminatory consequences when they backed by a legally adequate excuse

Because the illustrations or photos inside HUD’s established statutes become practices that break the newest Work considering a purpose otherwise outcomes theory, and suggested § (b)(6) means carry out that is currently prohibited inside the § (b)(4)-the fresh new provision from property-related properties-and you may § (d)(4)-the supply out of municipal characteristics-which finally code eliminates advised § (b)(6). This will prevent redundancy from inside the HUD’s Fair Construction Act statutes, as well as removal about recommended rule is not created because the a good substantive change.