On February 27, 2023, the Department of Justice (DOJ) entered into a consent order with Park National Bank. The Order alleges that Park National Bank (“PNB”) engaged in a pattern or practice of unlawful redlining in violation of the Fair Housing Act (“FHA”), and the Equal Credit Opportunity Act (“ECOA”), and Regulation B, by discriminating on the basis of race, color, and national origin. Specifically, the United States alleges that PNB engaged in: Illegal redlining […]
Category: Redlining
TOWNSTONE MORTGAGE REVERSAL
During July 2020, the Consumer Financial Protection Bureau (CFPB) filed its first redlining complaint against a nonbank mortgage company, Townstone Mortgage (Townstone), under the Equal Credit Opportunity Act (ECOA) and Consumer Financial Protection Act (CFPA). The US District Court for the Northern District of Illinois recently granted Townstone’s motion to dismiss the CFPB’s complaint on the grounds that the ECOA applies to applicants and not to prospective applicants. The court ruled in favor of the […]
TRIDENT MORTGAGE TO PAY $22 MILLION FOR DISCRIMINATION VIOLATIONS
On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) took action to end Trident Mortgage Company’s intentional discrimination against families living in majority-minority neighborhoods in the greater Philadelphia area. The CFPB and DOJ allege Trident redlined majority-minority neighborhoods through its marketing, sales, and hiring actions. Specifically, Trident’s actions discouraged prospective applicants from applying for mortgage and refinance loans in the greater Philadelphia area’s majority-minority neighborhoods. If entered by […]
REDLINING IS ERUPTING
On October 22, 2021 redlining hell broke loose. Trustmark – The Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ), in cooperation with the Office of the Comptroller of the Currency (OCC), took action today to put an end to alleged redlining by Trustmark National Bank. The CFPB and DOJ allege that Trustmark discriminated against Black and Hispanic neighborhoods by deliberately not marketing, offering, or originating home loans to consumers in majority-Black and […]
CFPB KICKS ENFORCEMENT INTO HIGH GEAR
The Consumer Financial Protection Bureau (CFPB) will name Eric Halperin, a longtime consumer advocacy attorney and former official with the U.S. Department of Justice during the Barack Obama administration, to serve as its new enforcement director. This is according to original reporting at Bloomberg Law, based on conversations with internal CFPB sources who wished to remain unnamed. It is expected that Halperin will be appointed by CFPB Director Rohit Chopra in the coming days, according […]