Richard Shelby: “For some time now, HUD has claimed it has jurisdiction under the Fair Housing Act to investigate complaints about…”

“For some time now, HUD has claimed it has jurisdiction under the Fair Housing Act to investigate complaints about alleged insurance redlining practices. Statements have been made that the committee report language is an effort to somehow exempt the insurance industry from civil rights enforcement. Nothing could be further from the truth. This is not about civil rights. It is about regulation. Congress never intended to apply the Fair Housing Act to property insurance for the simple reason that the insurance industry is subject to State regulation under the McCarran-Ferguson Act. It is for this reason that the Congress chose specifically not to include the sale or underwriting of insurance under the Fair Housing Act. HUD's enforcement and regulatory activities regarding property insurance is clearly a waste of resources because it duplicates State laws and regulations. Virtually every State and the District of Columbia have laws or regulations governing unfair discriminatory practices by insurance companies. States are actively investigating and addressing discrimination where it is found to occur. HUD is just adding another wasteful and unnecessary layer of bureaucracy.”