Supreme Court to Hear Housing Discrimination Case

June 18, 2013
Los Angeles Times  
mortgage lending news

On Monday, the Supreme Court opted to take up a politically volatile housing discrimination issue that the White House had gone to great lengths to keep away from the court. The justices voted in favor of hearing a New Jersey city's appeal arguing it could not be held liable for housing discrimination in redeveloping a depressed area of town and reducing the number of homes that are available to Latinos and African Americans in the process. The core issue is whether the Fair Housing Act forbids actions by cities or mortgage lenders that end up having a "discriminatory effect" on minorities. This will be a first for the Supreme Court, as it has never ruled on whether the Fair Housing Act extends to discrimination claims where there may be no proven intent to discriminate but rather a statistically demonstrated "discriminatory effect" or "disparate impact."
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