Legal Blog

Compensation and Compliance Matters: Fair Lending Lawsuit Could Affect Disparate Impact

The city of Miami was recently found to have standing to sue lenders under the Fair Housing Act in a case and decision that could eventually expand the implications of the recent disparate impact ruling. The 11th Circuit U.S. Court of Appeals allowed a lawsuit filed by the city of Miami to proceed based upon allegations that the lender had promoted urban blight and caused the city to experience reduced tax collections as a result of the lender’s alleged approval of loans to unqualified borrowers. Miami alleged that when those loans went bad, the homes were foreclosed upon and fell into disrepair. Because taxes collected by the city had fallen while costs to fight urban blight rose, the city sued the lender for making loans to unqualified borrowers.

Click here to read the entire article on National Mortgage News.

akaren@offitkurman.com  | 240.507.1740

Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.

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