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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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