News & Analysis as of

Discriminatory Lending Practices

Orrick, Herrington & Sutcliffe LLP

DOJ settles with credit union in redlining action

On October 10, the DOJ announced its first redlining settlement against a credit union. The credit union agreed to pay over $6.5 million to resolve allegations of lending discrimination by redlining predominantly Black and...more

Orrick, Herrington & Sutcliffe LLP

DOJ, CFPB file complaint, propose order against mortgage company for alleged redlining

On October 15, the CFPB and DOJ announced an enforcement action against a mortgage company, alleging it engaged in redlining against majority-Black neighborhoods in the greater Birmingham, Alabama area. According to the...more

Hudson Cook, LLP

CFPB and DOJ "Combating Redlining Initiative" Finds National Mortgage Company in the Crosshairs for Alleged Lending Discrimination

Hudson Cook, LLP on

On October 15, 2024, the CFPB and DOJ filed a complaint and proposed consent order against the Company, alleging violations of the Fair Housing Act (FHA), Equal Credit Opportunity Act (ECOA) and its implementing Regulation B,...more

Troutman Pepper

DOJ and CFPB Announce Landmark Redlining Settlement With Fairway Independent Mortgage Corporation

Troutman Pepper on

On October 15, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Department of Justice (DOJ) announced that they reached a settlement with Fairway Independent Mortgage Corporation (Fairway). This settlement...more

Troutman Pepper

Troutman Pepper Weekly Consumer Financial Services Newsletter- October 2024 # 3

Troutman Pepper on

To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Seyfarth Shaw LLP

Dealer Group Sues FTC to Enjoin Administrative Proceeding Over Alleged Junk Fees and Discriminatory Lending Practices - Seyfarth's...

Seyfarth Shaw LLP on

On October 4, 2024, Asbury Automotive Group, a Fortune 500 company and one of the largest automobile dealer groups in the United States, sued the Federal Trade Commission (FTC) to enjoin as unconstitutional the FTC’s...more

Troutman Pepper

DOJ Reaches Historic Multi-Million Dollar Redlining Settlement With Citadel Federal Credit Union

Troutman Pepper on

On October 10, the U.S. Department of Justice (DOJ) announced a landmark redlining settlement with Citadel Federal Credit Union (Citadel), marking the first such agreement with a credit union in the DOJ’s history. This...more

Ballard Spahr LLP

Citadel FCU is first credit union to settle DOJ redlining complaint

Ballard Spahr LLP on

The Justice Department announced that Citadel Federal Credit Union has agreed to pay more than $6.5 million to resolve allegations that it engaged in a pattern or practice of redlining majority-Black and Hispanic...more

Ballard Spahr LLP

Judge refuses to dismiss most reverse discrimination counts in case against Colony Ridge

Ballard Spahr LLP on

Saying that reverse redlining is a form of discrimination, the U.S. District Court for the Southern District of Texas has refused to dismiss a discrimination case alleging that Texas developer Colony Ridge specifically...more

GeoDataVision

Section 1071 Rule: The Big Gap Between Small Business Lending and “Covered” Loans

GeoDataVision on

I’ve written articles critical of the Section 1071 Rule and the CFPB’s implementation of the new rule. For example, the scheduled “applicable dates” for data recording and reporting make no sense at all. As currently...more

GeoDataVision

Is Fair Lending Enforcement Fair Today? Part II

GeoDataVision on

Previously, I have written about regulatory enforcement of anti-redlining regulations. I pointed out the problems and potentially misleading statistical conclusions caused by the application of what is called a “REMA” or...more

GeoDataVision

Redlining Isn’t What it Used To Be

GeoDataVision on

In a recent podcast, Len and Dean discuss the June 10 article "Manufacturing Fair Lending" from National Mortgage Professional, which delves into the "Modern Theory of Redlining" introduced by bank regulators after AG...more

GeoDataVision

How to Minimize Compliance Risk in the Radical New “Modern” Redlining Era

GeoDataVision on

As any bank professional regulatory compliance professional knows redlining is the hottest issue today and has been since Attorney General Merrick Garland announced the “Combatting Redlining Initiative” in October 2021. Since...more

Ballard Spahr LLP

Federal Agencies Finalize Reconsideration of Value Guidance

Ballard Spahr LLP on

A group of federal agencies have finalized reconsideration of value (ROV) guidance for residential real estate valuations. The agencies are the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB),...more

Ballard Spahr LLP

OCC to review its preemption interpretations in light of Supreme Court opinion and state debanking laws

Ballard Spahr LLP on

On July 17, Acting Comptroller of the Currency Michael Hsu delivered prepared remarks before the Exchequer Club entitled “Size, Complexity, and Polarization in Banking.”...more

Saul Ewing LLP

CFPB v. Townstone Financial - 7th Circuit Expands Equal Credit Opportunity Act Claims to “Potential Applicants” in Redlining...

Saul Ewing LLP on

On July 11, 2024, the U.S. Court of Appeals for the 7th Circuit held in Bureau of Consumer Financial Protection v. Townstone Financial, Inc., that the Equal Credit Opportunity Act (“ECOA”) prohibits discriminatory conduct,...more

Troutman Pepper

Troutman Pepper Weekly Consumer Financial Services Newsletter - July 2024 # 3

Troutman Pepper on

To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Ballard Spahr LLP

7th Circuit Holds ECOA Protections Apply to Prospective Applicants

Ballard Spahr LLP on

In a major win for the CFPB, in CFPB v. Townstone Financial, a panel of the U.S. Court of Appeals for the Seventh Circuit (7th Circuit) recently held that the Regulation B provision prohibiting discrimination under the Equal...more

Ballard Spahr LLP

New Florida Law Prohibits Banks from Considering Customers’ Political, Religious Beliefs

Ballard Spahr LLP on

A Florida law that prohibits federal and state depository institutions conducting business in the state from denying services based on religion or political beliefs and activities went into effect on July 1....more

Troutman Pepper

Seventh Circuit Reverses District Court Decision, Expands ECOA to Include Prospective Applicants

Troutman Pepper on

As discussed here, on February 3, 2023, an Illinois federal court dismissed a case brought by the Consumer Financial Protection Bureau (CFPB or Bureau) in 2020 against Townstone Financial, Inc., a Chicago mortgage lender, for...more

GeoDataVision

“Manufactured” Redlining

GeoDataVision on

In a recent article in National Mortgage Professional entitled "Manufacturing Fair Lending”, former chief of the Housing and Civil Enforcement Section at the Department of Justice under Attorney General William Barr, Paul...more

GeoDataVision

Discrimination and Bias in Residential Lending

GeoDataVision on

In this podcast episode, Dean and Len discuss the timely issue of appraisal discrimination and bias within the context of Fair Lending. Dean highlights the FFIEC's recent guidance on mitigating risks related to discriminatory...more

GeoDataVision

“Figures don’t lie” but do regulators figure? Simpson’s Paradox says so

GeoDataVision on

In emails in recent months we've warned bankers about the extremely aggressive enforcement of anti-redlining policies. This is becoming more and more obvious every day as more banks get threatened with referral to the DOJ....more

GeoDataVision

Are Regulators Fairly Evaluating the Hottest Fair Lending Issue: Redlining?

GeoDataVision on

Since October 2021, the prudential bank regulators in concert with the Department of Justice have been pursuing the “Anti-Redlining Initiative” announced by Attorney General Merrick Garland on October 21, 2021. During that...more

Orrick, Herrington & Sutcliffe LLP

FDIC releases bank report on its past discriminatory lending practices

On April 3, the FDIC made public for the first time its Community Reinvestment Act Performance Evaluation for a bank from September 2022. The bank focused on residential and commercial lending and had $1.15 billion in assets...more

181 Results
 / 
View per page
Page: of 8

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide