All Things Newz
Law \ Legal

CFPB And DOJ Reach $24.4 Settlement With Mortgage Originator For Alleged Lending Discrimination – Financial Services



To print this article, all you need is to be registered or login on Mondaq.com.

On July 27, 2022, the Consumer Financial Protection Bureau
(CFPB) and U.S. Department of Justice (DOJ) announced that they reached a settlement with
a nonbank residential mortgage lender to resolve allegations of
race-based lending discrimination in violation of the Fair Housing
Act (FHA), 42 U.S.C. §§ 3601-3619; the Equal Credit
Opportunity Act (ECOA), 15 U.S.C. §§ 1691-1691f, and its
implementing regulation (Regulation B), 12 C.F.R. pt. 1002; and the
Consumer Financial Protection Act (CFPA), 12 U.S.C. §
5536(a)(1)(A).

According to the agencies’ complaint, the lender allegedly engaged in
unlawful redlining when it “avoided providing home loans and
other home mortgage services in majority-minority neighborhoods in
the Philadelphia [Metropolitan Statistical Area (MSA)].” The
lenders allegedly did so by locating all of its offices and loan
officers in majority-white neighborhoods, concentrating its
marketing efforts exclusively in majority-white neighborhoods, and
distributing internal communications to its employees with racist
language and messages about certain majority-minority
neighborhoods.

If entered by the United States District Court for the Eastern
District of Pennsylvania, the lender will pay $20.4 million towards
various programs to assist with revitalization efforts in
minority-majority neighborhoods located in the Philadelphia MSA,
including a loan subsidy program, minority advertising and
outreach, consumer education services, and community development
partnerships. The proposed consent order also requires the lender to pay
a $4 million civil penalty. As part of the settlement, the lender
neither admits nor denies the allegations in the complaint.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Finance and Banking from United States

Schumer-Manchin Deal Bolts Forward

Norton Rose Fulbright US LLP

The tax equity market will look different if the surprise deal that the Senate majority leader, Chuck Schumer, sealed yesterday with Democratic holdout…

CFPB Zeros In On Servicemembers Civil Relief Act

McGlinchey Stafford

Continuing a recent trend of highlighting potential unfair and deceptive acts or practices (UDAAP) within the auto loan servicing industry, the Consumer Financial Protection Bureau (CFPB) recently issued a new blog post focusing on the Servicemembers Civil Relief Act (SCRA).



Source link

Related posts

WeirFoulds Technology Insights: “Dark Web: What’s Underneath The Internet” – Privacy Protection

Horace Hayward

Four Steps Employers Should Take Now To Comply With New California Consumer Privacy Act Requirements – Privacy Protection

Horace Hayward

Central District Of California Dismisses With Prejudice Suit Against Children’s Cartoon Company And Finds That The Complaint Violated Rule 8 Of The Federal Rules Of Civil Procedure – Securities

Horace Hayward