Answer:
Under the Discriminatory Effects Standard ruling, which was restored in March 2023, disparate impact occurs when a facially neutral policy or practice burdens certain persons on a prohibited basis. Facially neutral means that on the surface, or “face value,” no one is expressly excluded, however the lender’s standards are found to disproportionally exclude protected groups. Because there is no intent to discriminate, the impact is considered unintentional.
print
share