News & Analysis as of

Redlining Equal Credit Opportunity Act Settlement

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’

Ballard Spahr LLP on

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

Sheppard Mullin Richter & Hampton LLP

CFPB Reaches Settlement in Redlining Suit Against Nonbank Mortgage Lender

On November 1, the CFPB filed a proposed stipulated final order that would resolve the Bureau’s pending lawsuit in the Northern District of Illinois against a nonbank mortgage lender and broker for allegedly engaging in...more

Ballard Spahr LLP

CFPB seeks approval of Townstone Financial order

Ballard Spahr LLP on

Following lengthy litigation, the CFPB is attempting to close the books on its case against Townstone Financial alleging discriminatory lending practices and redlining African American neighborhoods in Chicago....more

Troutman Pepper Locke

CFPB Reaches Settlement with Townstone Financial, Inc.

Troutman Pepper Locke on

In a significant development, the Consumer Financial Protection Bureau (CFPB or Bureau) has finally reached a settlement with Townstone Financial, Inc. (Townstone) in the first redlining case brought against a nonbank...more

Troutman Pepper Locke

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

Troutman Pepper Locke 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

Ballard Spahr LLP

Walden University Agrees to Proposed Settlement to Resolve Reverse Redlining Claims

Ballard Spahr LLP on

On March 28, 2024, four former Walden University students (“Plaintiffs”) filed a proposed settlement both individually and on behalf of a putative class of current and former Walden University (“Walden”) students with the...more

Ballard Spahr LLP

DOJ Settles Redlining Claims in Rhode Island

Ballard Spahr LLP on

The Department of Justice (DOJ) announced a settlement agreement with Washington Trust Company, of Westerly (WTC) to resolve claims that WTC redlined majority Black and Hispanic neighborhoods in Rhode Island....more

Troutman Pepper Locke

DOJ Reaches $1.15 Million Redlining Settlement With American Bank of Oklahoma

Troutman Pepper Locke on

On August 28, the U.S. Department of Justice (DOJ) announced its eighth redlining settlement under its Combatting Redlining Initiative. The settlement between the DOJ and the American Bank of Oklahoma, which originated from a...more

Ballard Spahr LLP

DOJ Settles Redlining Claim Against ESSA Bank

Ballard Spahr LLP on

The Justice Department (DOJ) recently announced a settlement with ESSA Bank & Trust (ESSA), which has agreed to pay over $3 million to resolve allegations that it engaged in a pattern or practice of redlining in violation of...more

Goodwin

DOJ Reaches Settlement Over Bank’s Alleged Redlining

Goodwin on

On May 31, 2023, the United States Department of Justice (DOJ), announced that it had entered into a settlement with a Philadelphia based bank and trust company over allegations that the bank had engaged in unlawful redlining...more

Sheppard Mullin Richter & Hampton LLP

CFPB, DOJ Propose $22 Million Penalty Against Nonbank Mortgage Lender for Illegal Redlining

On July 27, the CFPB and DOJ proposed a settlement with a nonbank mortgage lender for its discriminatory “redlining” lending practices against minority families living in the greater Philadelphia area...more

Alston & Bird

CFPB and DOJ Announce Redlining Settlement Against Non-Bank Mortgage Lender

Alston & Bird on

A&B Abstract: On July 27, 2022, the Consumer Financial Protection Bureau (“CFPB”) and the US Department of Justice (“DOJ”) entered into a settlement with Trident Mortgage Company (“Trident”), resolving allegations under the...more

Poyner Spruill LLP

Redlining Legal Theories Remain Unresolved

Poyner Spruill LLP on

On May 8, 2018, the United States Department of Justice (DOJ) settled its fair lending “redlining” lawsuit against Minnesota-based KleinBank, a family-owned bank with assets of more than $1.9 billion. The settlement follows...more

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