CFPB, DOJ Announce Joint Action Against Hudson City Savings Bank in Redlining Settlement

CFPB, DOJ Announce Joint Action Against Hudson City Savings Bank in Redlining Settlement

Today, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) announced a joint action against Hudson City Savings Bank for illegal redlining. The complaint alleges that the Bank “structured its mortgage business to provide unequal access to credit products in majority-Black-and-Hispanic neighborhoods in New York, New Jersey, Connecticut, and Pennsylvania.” This settlement, if approved by the Court, “represents the largest federal court settlement for redlining in history as measured by loan subsidies provided to consumers. Together [the CFPB and the DOJ] are asking the court to order Hudson City to pay $25 million in loan subsidies to make mortgage loans accessible to qualified borrowers in neighborhoods that the company had illegally redlined.

September 24th, 2015|