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FTC, like CFPB and others, won't enforce disparate impact
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On Friday, FTC Chairman Andrew Ferguson criticized disparate impact and the federal government's past policies of penalizing companies without proving discriminatory intent.
Read more:"Every district and appellate court to face the issue of disparate impact — and there have been many — has accepted that disparate impact is a cognizable basis for ECOA liability," Khan said in 2024.
In June, the Department of Justice's Office of Legal Counsel issued a formal opinion that the EEOC's earlier interpretations and guidelines on disparate impact liability were unconstitutional.
The rule rewriting Reg B states that that ECOA "does not authorize disparate impact claims."
The DOJ claimed that policy had a disparate impact on Black and Hispanic borrowers, who were given too few loans.