Vice Chair for Supervision of the Federal Reserve Michael S. Barr spoke at the "Fair Housing at 55" National Conference on July 18 in Washington D.C., and in his keynote speech he underscored the importance of the Fair Housing Act. According to a press release by the Federal Reserve, Barr advocated for continuous progress toward a fair and equal society through Federal Reserve actions.
"Promoting fair and equitable treatment to all consumers is the right thing to do, and this is also just good business. Ensuring that potential borrowers are treated equally can mean developing previously underserved communities, creating more opportunities for lending, and expanding markets which can result in better returns for banks," Barr said.
Barr took the stage at the "Fair Housing at 55—Advancing a Blueprint for Equity" National Fair Housing Alliance 2023 National Conference in Washington, D.C. In his keynote speech, he underscored the significance of the Fair Housing Act, commemorating 55 years since its enactment into law.
Vice Chair Barr emphasized the significance of the Fair Housing Act, stating, "Along with the Voting Rights Act, the Fair Housing Act was an essential step in making good on the promise of the Civil Rights Act and of the vision of Dr. Martin Luther King, to build a fair and equal society."
He commended the efforts of the National Fair Housing Alliance (NFHA) and its partner organizations in their pursuit of creating a just and equitable society for all. However, Barr also acknowledged the need for continuous progress, stating, "We need to do that because everyone deserves a fair and equal opportunity."
During his speech, Barr spoke about the crucial role of the Federal Reserve in eradicating discrimination in lending practices. He highlighted the importance of fair lending laws, specifically mentioning the Fair Housing Act and the Equal Credit Opportunity Act (ECOA). Barr also stressed how the Federal Reserve exercises its supervisory and enforcement authority to ensure compliance with these laws, safeguarding the rights of consumers.
The Fair Housing Act was enacted to protect people from discrimination in various housing-related activities, according to the U.S. Department of Housing and Urban Development. It prohibits bias based on race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability.
The act covers most types of housing, and in some occurrences it exempts owner-occupied buildings with no more than four units, as well as single family houses that are sold or rented without the use of an agent, housing for religious organizations and private clubs.
Barr also stressed the significance of the Equal Credit Opportunity Act, which prohibits creditors from discriminating against credit applicants based on race, color, religion, national origin, sex, marital status, age, or participation in public assistance programs.
In the act, illegal discrimination includes refusing to rent or sell, refusing to negotiate housing, otherwise making housing unavailable, setting different terms, conditions or privileges for sale or renting, providing a person different housing services, falsely denying that housing is ready for sale or rental, and limiting privileges of a dwelling or discouraging buying or renting, among others.
"Promoting fair and equitable treatment to all consumers is the right thing to do, and this is also just good business. Ensuring that potential borrowers are treated equally can mean developing previously underserved communities, creating more opportunities for lending, and expanding markets which can result in better returns for banks," remarked Barr, who emphasized the positive impact of fair lending practices on both the financial sector and society at large.