The End Of An Era....."Oh, Please" ???

NCUA RBC experts:
"Big hat, no cattle"

As credit unions prepare for yet another head-on collision with NCUA's much-ridiculed, risk-based capital (RBC) "experts", it might be hopeful to take note of a recent U.S. District Court decision concerning disparate impact, which is unintentional discrimination by lenders against minorities and others.  

The decision was rendered by Judge Richard Leon in the District of Columbia, right there in the backyard of the U.S. Supreme Court. The case was a challenge to the pursuit of disparate impact claims against lenders under the Fair Housing Act (FHA). The judge basically said that the FHA covered only intentional discrimination and not unintentional discrimination, which certainly rings true in terms of fairness and common sense. Regardless of your politics, the concept of disparate impact is the slipperiest of slippery slopes in terms of legal ethics.

But what the Court said about the federal government's case (HUD was the agency) was of greater note: "Another example of an administrative agency trying desperately to write into law that which Congress never intended to sanction."  You will unfortunately see another agency, dearer to your heart, cross-validate Judge Leon's statement in January.  Wonder if credit unions have considered and planned for that eventuality?

When the government contested his right to even consider the matter since the courts should defer to the wisdom of administrative agencies, Judge Leon gave a very precise two-word reply to express - appropriately - his disdain.

He simple said...

"OH, PLEASE!"