Fair Lending

Executive Order on Disparate impact and What a Bank Should Know

On April 23, 2025, an Executive Order regarding Disparate Impact was issued. The Order states: “It is the policy of the United States to eliminate the use of disparate-impact liability in all contexts to the maximum degree possible.” In addition, it requires the assessment of pending investigations and litigation to extend to the Department of Housing and Urban Development, Consumer Financial Protection Bureau, Federal Trade Commission, and other agencies enforcing laws such as the Equal Credit Opportunity Act and Fair Housing Act.

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