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133 Banking L.J. 16 (2016)
Robust Causality and Cautionary Standards: Why the Inclusive Communities Decision, despite Upholding Disparate-Impact Liability, Establishes New Protections for Defendants - Part II

handle is hein.journals/blj133 and id is 20 raw text is: 







Robust Causality and Cautionary Standards:
Why the Inclusive Communities Decision,
Despite Upholding Disparate-Impact Liability,
Establishes New Protections for
Defendants-Part II

          Elizabeth L. McKeen, Bimal Patei and Ashley Pavel
    In this two-part article, the authors illustrate the defendant-facing
    protections of the recent Inclusive Communities decision by examining
    disparate-impact claims that previously survived dismissal The first part of
    the article, which appeared in the November/December 2015 issue ofThe
    Banking Law Journal, provided background on the issue prior to the
    Inclusive Communities ruling, explained the decision, and discussed why
    Inclusive Communities articulates a more demanding standard for
    asserting a disparate-impact claim. This second part of the article, explains
    why Inclusive Communities should result in swift disposition of meritless
    FHA claims.

INCLUSIVE COMMUNITIES SHOULD RESULT IN SWIFT
DISPOSITION OF MERITLESS FHA CLAIMS
   Under the heightened robust causality pleading standard, many previous
disparate-impact cases that survived a motion to dismiss likely would not have
proceeded. To illustrate this point, we have analyzed a range of FHA claims that
survived dismissal against the newly articulated Inclusive Communities standard.

Municipalities' Disparate-Impact Claims to Recover Property Tax
Revenues Lost During the Financial Crisis from Mortgage Lenders Are
Subject to Swift Dismissal
   In recent years, several municipalities have asserted disparate-impact claims
alleging mortgage lenders violated   the FHA    by  engaging in  reverse
redlining-i.e., originating mortgage loans to minority borrowers with less

    Elizabeth L. McKeen is the co-chair of O'Melveny & Myers LLP's Financial Services
Practice, in which Ashley Pavel is a counsel. Bimal Patel, former Senior Advisor to Director
Jeremiah 0. Norton at the Federal Deposit Insurance Corporation, is head of the firm's Financial
Advisory and Regulation Practice. Mr. Patel is a member of the Board of Editors of The Banking
Law Journal The opinions expressed in this article do not necessarily reflect the views of
O'Melveny or its clients, and should not be relied upon as legal advice.

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