Mortgage Daily

Published On: February 27, 2015

A decision is expected this summer from the nation’s top court in a disparate impact case. Other activity in discrimination-related litigation includes an unsuccessful attempt at mediation and more routine court matters.

The U.S. Supreme Court heard oral argument on Jan. 21 in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project.

The case deals with questions of disparate impact claims under the Fair Housing Act, specifically whether lenders can be found to have discriminated against minorities even if there is no proof of intent to discriminate.

It’s not the first time the question has come before the High Court. Two earlier cases involving this issue were settled before oral arguments.

According to an analysis by Ballard Spahr, the Supreme Court will issue its decision sometime before the end of June 2015.

In City of Los Angeles v. JPMorgan Chase, a predatory lending case, a protective order regarding confidential discovery information was filed on Feb. 18. Chase is accused of redlining and reverse redlining.

According to the order, any party or non-party may designate as confidential any discovery materials which that party considers in good faith to be confidential because it includes individual personal information that is protect from disclosure under state or federal law, trade secrets, confidential financial information that, if disclosed to the public, could reasonably be expected to cause identifiable or significant harm to the designating party, confidential underwriting and pricing models or criteria, competitive compensation structures or information regarding individual employee compensation or information that the designating party has a duty to a third-party or court to maintain as confidential. A federal judge had declined to dismiss the case.

A similar protective order was filed on Feb. 18 in City of Los Angeles v. Citigroup Inc., Citibank, N.A.

In People of the State of New York v. Evans Bancorp, talks with a mediator on Jan. 21 failed to reach an agreement with the New York Attorney General over allegations that the bank’s mortgage lending practices violated state fair lending laws. A new date for mediation mediator has not been scheduled.

A scheduling order was filed on Feb. 9 in Inclusive Communities Project v. U.S. Department of Treasury. The order sets deadlines for filing a motion to join other parties, designating expert witnesses, amending of pleadings and summary judgment motions.

The plaintiffs allege that the Department of Treasury and Office of Comptroller of the Currency perpetuated racial segregation in Dallas in their administration of the Low Income Housing Tax Credit program. The claims are based on the disparate impact theory of liability, in which the plaintiff uses statistics to show that racial minorities are harmed by the policies; no intentional discrimination has to be proven.

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