Texas Housing Supreme Court Case

Last week the Supreme Court also issued a ruling in the Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. While this case may not have received as much media attention as some of the others, it is nonetheless very consequential.

Under this ruling, the Supreme Court interpreted the Fair Housing Act to allow claims of disparate impact—or the prosecution of business practices as discriminatory when there is no discriminatory intent. While I fully support the intentions of rooting out discrimination from our society, I’m afraid this ruling could open up a Pandora’s Box and further expand the regulatory power of the Obama Administration like we have not seen before. This ruling could further expose our Main Street community banks and credit unions to the Obama Administration’s regulatory push, and cause them to further retreat from offering financial products Texans most rely on. As Chairman of the Financial Institutions and Consumer Credit Subcommittee, I will continue to closely monitor this issue.


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