Is disparate effect permissible under ECOA?

The policy has been in effect for ten years. Finally, evidence of discriminatory intent is not necessary to establish that a lender’s adoption or implementation of a policy or practice that has a disparate impact is in violation of the FHAct or the ECOA.

What is disparate treatment in fair 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 is comparative disparate treatment?

Comparative evidence of disparate treatment occurs when a protected class applicant is treated less favorably than other applicants and is typically discovered through a comparative analysis during a fair lending examination.

What is an example of comparative disparate treatment?

Comparative Evidence of Disparate Treatment For example, a comparative analysis may compare the best (marginal) denials against the worst (marginal) approvals. Comparative evidence of disparate treatment often occurs when a creditor permits discretion in the underwriting process as discretion leads to inconsistencies.

What is an example of disparate treatment?

Disparate treatment refers to intentional discrimination, where people in a protected class are deliberately treated differently. This is the most common type of discrimination. An example would be an employer giving a certain test to all of the women who apply for a job but to none of the men.

Which action is illegal under the Equal Credit Opportunity Act?

This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.

Which of the following are examples of disparate treatment?

The following cases are disparate treatment examples in the categories of Age, Sex and Race Discrimination.

• Age Discrimination. “JPL systemically laid off employees over the age of 40 in favor of retaining younger employees.
• Sex Discrimination.
• Race Discrimination.
• Age Discrimination.
• Sex Discrimination.
• Race Discrimination.