Biden Orders Review – Fair Lending
Six days into his term, on January 26, 2021, President Biden issued a Memorandum for the Secretary of Housing and Urban Development.
The title is “Memorandum on Redressing our Nation’s and Federal Governments History of Discriminatory Housing Practices and Policies.” Biden indicates this is an issue that needs to be urgently addressed.
In the memorandum, Biden has tasked HUD to examine recent regulatory actions and their impacts, especially those developments occurring under the Trump administration.
Biden pointed out two particular initiatives for review:
1. The August 7, 2020 “Preserving Community and Neighborhood Choice” looking at HUD’s statutory duty to positively affirm fair housing, and
2. The September 24, 2020 “HUD’s Implementation of the Fair Housing Act’s Disparate Impact Statement”. In investigating the impact of this change, Biden also asks that the Secretary consider the impact that the effect of amending the February 15, 2013 rule entitled “Implementation of the Fair Housing Acts Discriminatory Effects Standard” has had on HUD’s duty to ensure compliance with the Fair Housing Act.
The President also specifically directs HUD to make any changes necessary and implement those changes so that HUD administers a program “that affirmatively furthers fair housing and HUD’s overall duty to administer the Act including by preventing practices with an unjustified discriminatory effect.”
The mortgage industry, which is directly affected by these changes, will be watching to see what changes HUD makes in the coming weeks, and will need to stay alert and nimble to adjust accordingly.
For more information, contact Troy Garris at 301-461-8952 or troy@garrishorn.com.
