The HUD has expressed an interest in restoring an Obama era rule which was modified during the Trump administration.

HUD has proposed to restore its 2013 Discriminatory Effects Standard—known in the industry as the “Disparate Impact” rule. Published in the Federal Register, the Notice of Proposed Rulemaking would largely restore the Discriminatory Effects Standard. The rule was written during the Obama Administration but modified during the Trump Administration before a court in 2020 blocked those modifications. In its NPRM, HUD states it believes the 2013 rule is more consistent with decades of case law and better effectuates the Act’s broad remedial purpose of eradicating unnecessary discriminatory practices from the housing market. “We must acknowledge that discrimination in housing continues today and that individuals, including people of color and those with disabilities, continue to be denied equal access to rental housing and homeownership,” said HUD Secretary Marcia Fudge. “It is a new day at HUD—and our department is working to lift barriers to housing and promote diverse, inclusive communities across the country. Today’s publication of the proposed discriminatory effects rule is the latest step HUD is taking to fulfill its duty to ensure more fair and equitable housing.” “Every American deserves the right to be treated fairly and equitably is the process of securing safe and affordable housing,” said Pete Mills, Senior Vice President of Residential Policy and Member Engagement with the Mortgage Bankers Association. “We look forward to reviewing the proposed rule and working with HUD to ensure a final rule that is consistent with case law, provides robust protections for borrowers and renters and clarity for lenders.”

Source: The MBA