To print this article, all you need to do is be registered or log in to Mondaq.com.
On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and the United States Department of Justice (DOJ) announced that they had reached an agreement with a non-bank residential mortgage lender to resolve allegations of racial discrimination in lending in violation of the Fair Housing Act. (FHA), 42 USC §§ 3601-3619; the Equal Credit Opportunity Act (ECOA), 15 USC §§ 1691-1691f, and its regulations (Regulation B), 12 CFR pt. 1002; and the Consumer Financial Protection Act (CFPA), 12 USC § 5536(a)(1)(A).
According to the agencies’ complaint, the lender allegedly engaged in unlawful redlining when it “avoided providing home loans and other mortgage services in Philadelphia’s majority minority neighborhoods. [Metropolitan Statistical Area (MSA)]. The lenders allegedly did so by locating all of its loan offices and loan officers in majority white neighborhoods, focusing its marketing efforts exclusively in majority white neighborhoods, and distributing internal communications to its employees containing racist language and messages about certain majority minority groups. neighborhoods.
If adjudicated by the United States District Court for the Eastern District of Pennsylvania, the lender will pay $20.4 million for various programs to aid revitalization efforts in majority-minority neighborhoods located in the MSA of Philadelphia, 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 civil penalty of $4 million. As part of the settlement, the lender neither admits nor denies the allegations contained in the complaint.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
POPULAR ARTICLES ON: Finance and Banking of the United States
