Mortgage and Consumer Lending: Defending Disparate Impact Claims Amid Aggressive Regulatory Enforcement

Navigating HUD DI Rule, Conflicting Court Decisions, Impact on the Qualifying Mortgage Rule, and CFPB Enforcement Actions

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Thursday, April 17, 2014

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will discuss the disparate impact (DI) theory of discriminatory lending in both mortgage and non-mortgage consumer lending, focusing on HUD's Disparate Impact Rule, recent enforcement efforts, potential risks to lenders complying with the new qualifying mortgage rules, and recent CFPB initiatives. The program will discuss recent enforcement actions and lessons learned for defending future actions as well as pursuing compliance efforts.


The DI theory of mortgage and consumer lending is now dominating federal regulatory enforcement efforts. HUD’s controversial Disparate Impact Rule, finalized in early 2013, purports to merely "formalize" this “long held” theory of lending discrimination. 

The settlement of the Mount Holly case in Nov. 2013 ended the most recent chance for the Supreme Court to address the viability of the disparate impact theory, leaving the issue as yet unsettled. There is new concern that lenders' risk of DI liability may be heightened by complying with the Qualified Mortgage Rule (QMR).

Meanwhile, the CFPB has vigorously pursued the DI theory in consumer lending, focusing of late on auto financing. In Dec. 2013, the CFPB and DOJ entered into a consent order with an auto finance company and its parent bank. The terms of this settlement are instructive to lenders subject to CFPB oversight and enforcement.

Listen as our authoritative panel of practitioners discusses critical developments in fair lending and the DI theory of discrimination in the context of mortgage and non-mortgage consumer lending. The panel will discuss the scope of HUD's DI rule, recent regulatory enforcement and litigation, and heightened risks for lenders in light of the QMR. The program will discuss settlement actions and lessons learned for defending future actions as well as pursuing compliance efforts.



  1. HUD Disparate Impact Rule for fair mortgage lending
  2. Case law developments up to Mount Holly for mortgage lending
  3. Mortgage lending regulatory enforcement actions and consent orders
  4. Disparate impact in non-mortgage lending—CFPB regulatory and enforcement actions


The panel will review these and other key questions:

  • What lending practices have been the focus of recent regulatory enforcement actions and what are the take-aways from those actions and settlements?
  • What issues were presented for Supreme Court review in the Mount Holly case and its predecessor, Magner v. Gallagher?
  • What potential risks might lenders face in complying with the new Qualified Mortgage Rule, and what steps can they take to mitigate those risks?
  • What consumer lending practices and industries have been targeted by the CFPB?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Paul F. Hancock
Paul F. Hancock

K&L Gates

Mr. Hancock focuses his practice on litigation and defense of federal and state government investigations. A primary...  |  Read More

Benjamin P. Saul
Benjamin P. Saul

Goodwin Procter

Mr. Saul is a leader in the areas of consumer financial services enforcement and fair and responsible...  |  Read More

Philip R. Stein
Philip R. Stein

Bilzin Sumberg

Mr. Stein focuses his practice on complex commercial litigation and regularly acts as lead counsel to mortgage...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Audio