News & Analysis as of

Redlining

Sheppard Mullin Richter & Hampton LLP

Illinois District Court Denies Motion to Vacate CFPB Redlining Settlement

On June 12, the U.S. District Court for the Northern District of Illinois denied a motion to vacate a November 2024 stipulated final judgement and order requiring a Chicago-based mortgage broker to pay a $105,000 civil money...more

Sheppard Mullin Richter & Hampton LLP

CFPB and DOJ Terminate Another Redlining Consent Order

On June 2, the U.S. District Court for the Eastern District of Pennsylvania terminated a 2022 consent order and dismissed with prejudice the CFPB and DOJ’s redlining lawsuit against a nonbank mortgage lender. The motion to...more

Troutman Pepper Locke

Townstone Case Twist: Federal District Court Stands Firm on Redlining Settlement Amid CFPB Controversy

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On June 12, the U.S. District Court for the Northern District of Illinois denied the joint motion by the Consumer Financial Protection Bureau (CFPB or Bureau) and Townstone Financial, Inc. to vacate the Stipulated Final...more

Ballard Spahr LLP

More Early Terminations of Redlining Consent Orders

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As previously reported, based on an unopposed motion submitted by the Department of Justice (DOJ) and Consumer Financial Protection Bureau (CFPB) the October 2021 redlining consent order with Trustmark National Bank was...more

Ballard Spahr LLP

DOJ Seeks Early Termination of Lakeland Bank Redlining Consent Order

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The U.S. Department of Justice (DOJ) has filed a motion with a federal district court to terminate early the September 2022 consent order with Lakeland Bank (Lakeland) that settled allegations of redlining under the Fair...more

Ballard Spahr LLP

Court Denies CFPB/Townstone Bid to Undo Consent Order

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As previously reported, in March 2025 the CFPB and Townstone Financial (Townstone) filed a joint motion with a U.S. District Court seeking to reverse the November 2024 consent order between the parties that resolved CFPB...more

Orrick, Herrington & Sutcliffe LLP

CFPB and DOJ terminate consent order with mortgage lender accused of redlining

On June 2, the U.S. District Court for the Eastern District of Pennsylvania granted a motion by the CFPB and DOJ to terminate a consent order and dismiss with prejudice a case alleging redlining against a mortgage lender...more

Sheppard Mullin Richter & Hampton LLP

DOJ Moves to End $13 Million Redlining Consent Order

On May 28, the U.S. Department of Justice filed a motion to terminate its redlining consent order against a New Jersey-based bank. The five-year order, entered in September 2022, resolved allegations that the banks violated...more

Sheppard Mullin Richter & Hampton LLP

DOJ and CFPB Terminate $9 Million Redlining Consent Order with Southern Regional Bank

On May 21, the U.S. District Court for the Western District of Tennessee granted a joint motion by the CFPB and DOJ to terminate a 2021 redlining settlement with a regional bank, vacating the consent order and dismissing the...more

Ballard Spahr LLP

Trustmark Redlining Consent Order Terminated

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A federal district court recently granted the unopposed motion of the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) to terminate their October 2021 consent order with Trustmark National Bank...more

GeoDataVision

Trump’s EO Regarding Disparate Impact: An Opportunity to Examine the REMA Concept

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President Trump signed Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy on April 23, 2025”. The EO proclaims a policy goal of eliminating “the use of disparate-impact liability in all contexts to the...more

GeoDataVision

The Impact of Trump’s Executive Order Regarding Disparate Impact

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Just when you thought the flurry of executive orders pertaining to “deregulation” might have slowed down, the President signed, on April 23, 2025, Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy.”...more

Orrick, Herrington & Sutcliffe LLP

District court receives joint parties’ counter to amicus brief in redlining case

On April 15, the CFPB filed a joint brief urging the U.S. District Court for the Northern District of Illinois to vacate a judgment and consent decree in a case involving alleged redlining practices by a financial company....more

Troutman Pepper Locke

CFPB and Townstone Financial Move to Vacate Redlining Settlement Alleging Misconduct Under Former CFPB Director

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In a surprising turn of events, the Consumer Financial Protection Bureau (CFPB or Bureau) and Townstone Financial, Inc. (Townstone) have jointly moved to vacate the Stipulated Final Judgment and Order previously entered in...more

Orrick, Herrington & Sutcliffe LLP

CFPB seeks to vacate redlining settlement and refund civil money penalty to firm

On March 26, the CFPB, in its first press release in over 50 days, announced its intention to seek to vacate a redlining settlement previously imposed on a nonbank retail-mortgage creditor and broker based in Chicago. As...more

Ballard Spahr LLP

CFPB seeking to reverse Townstone settlement, saying bureau ‘abused its power’

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Saying that the bureau under the Biden Administration abused its power, the CFPB is seeking to reverse its settlement with Townstone Financial....more

Goodwin

2024 Year in Review: Mortgage Origination and Servicing

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With the change in administration, enforcement actions at the federal level are expected to decrease, reflecting President Trump’s focus on deregulation. Indeed, during President Trump’s first term, the number of enforcement...more

Orrick, Herrington & Sutcliffe LLP

2nd Circuit affirms reverse redlining verdict against a lending institution

On February 19, the U.S. Court of Appeals for the Second Circuit affirmed a reverse redlining verdict in a case where the plaintiffs, Black homeowners living in New York City, sued the defendant, a lending institution,...more

Sheppard Mullin Richter & Hampton LLP

Second Circuit Upholds Reverse Redlining Verdict Against Mortgage Lender

On February 14, a divided Second Circuit panel upheld a 2016 jury verdict which found that a mortgage lender violated, among other laws, the Equal Credit Opportunity Act (“ECOA”) by engaging in “reverse redlining” when it...more

Troutman Pepper Locke

UDAAP and Fair Lending Developments: 2024 Year-in-Review and 2025 Predictions — The Consumer Finance Podcast

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In this third episode of the Year in Review series of The Consumer Finance Podcast, host Chris Willis is joined by Lori Sommerfield, a partner in Troutman Pepper Locke’s Consumer Financial Services Practice Group, to discuss...more

Alston & Bird

DEI in Lending: Are Special Purpose Credit Programs About to DIE?

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For the last several years, federal agencies, including the Consumer Financial Protection Bureau (“CFPB”), have been strongly encouraging financial institutions to implement and offer targeted credit assistance to...more

Orrick, Herrington & Sutcliffe LLP

CFPB takes action against mortgage company for discriminatory mortgage lending practices

On January 17, the CFPB released its complaint and proposed consent order against a nondepository mortgage company, alleging violations of the ECOA and Regulation B as well as the CFPA. The CFPB seeks to enjoin the company...more

Ballard Spahr LLP

CFPB, DoJ take action in redlining cases

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The CFPB has taken action against the Draper & Kramer Mortgage Corp. (DKMC) based on allegations of discriminatory lending activities that, according to the CFPB, discouraged homebuyers from applying to the company for home...more

Sheppard Mullin Richter & Hampton LLP

CFPB Takes Action Against Illinois Mortgage Lender for Redlining Violations

On January 17, 2025, the CFPB filed a complaint against an Illinois-based non-depository mortgage lender for allegedly engaging in discriminatory practices. The CFPB alleges the lender engaged in improper redlining by...more

Sheppard Mullin Richter & Hampton LLP

DOJ Announces Third Settlement with a Non-Depository Lender to Resolve Alleged Redlining Claims

On January 7, 2025, the United States Department of Justice (the “DOJ”) announced that a non-depository mortgage lender has agreed to pay $1.75 million in connection with allegations that it engaged in a pattern or practice...more

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