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De Omnibus Dubitandum - Lux Veritas

Sunday, September 15, 2013

CEI Opposes Risky, Race-Conscious Federal Lending

Hans Bader September 13, 2013

“Disparate impact” is a term in anti-discrimination law for when a neutral policy happens to affect minorities more than whites. One example is a standardized test that whites pass at a higher rate than some minority group, even though test scores are calculated the same way for members of all races. Disparate-impact is most commonly discussed in the context of hiring and school admissions. But in fact it can also play a role in financial melt-downs. Government can use the “disparate-impact” notion to pressure banks and mortgage companies into engaging in risky, race-conscious lending,
It’s for that reason the Competitive Enterprise Institute recently joined in an amicus brief filed by the Pacific Legal Foundation in a pending Supreme Court case, Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc. The question presented is whether federal agencies can inject race-conscious “disparate-impact” considerations into laws that were intended to be colorblind bans on racial discrimination, such as the Fair Housing Act…..To Read More…..

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