Fair Lending

CFPB Examines Impact of High Vehicle Costs on Consumer Credit Health

The Consumer Financial Protection Bureau (CFPB) is eyeing the relationship between rising car prices and changes in auto loan characteristics and performance. In a September 19, 2022, blog post, the bureau expressed concern about the impact of larger loan amounts and higher monthly payments on the financial health of consumers with near-prime or subprime credit [...]

September 22nd, 2022|

New FHFA Rule will Require Mortgage Servicers to Maintain Fair Lending Data

Fannie Mae and Freddie Mac will require mortgage servicers to obtain and maintain fair lending data on their loans, and for this data to transfer with servicing throughout the term of the mortgage, starting in March 2023. This requirement is one of two updates the Federal Housing Finance Agency (FHFA) recently announced. In addition to [...]

August 11th, 2022|

Trident Mortgage Company Enters $20 Million+ Redlining Settlement Agreement

The Department of Justice (DOJ), Consumer Financial Protection Bureau (CFPB) and the Attorneys General of Pennsylvania, New Jersey, and Delaware, announced on July 27, 2022, that they had entered agreements with Trident Mortgage Company (Trident) resolving redlining allegations against Trident in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area (Philadelphia MSA). In a complaint filed also on [...]

July 28th, 2022|

FTC Announces $10 Million Settlement with Illinois-Based Automotive Group

The Illinois Attorney General and the FTC announced a settlement that requires North American Automotive Services Inc., also known as Edward Napleton Automotive Group (Napleton), to pay $10 million to resolve allegations dealerships charged illegal fees. The settlement was filed with a complaint alleging Napleton dealerships illegally charged consumers for unwanted “add-ons,” discriminated against Black customers [...]

April 4th, 2022|

CFPB Extends Protections to Target Consumer Finance Discrimination

The Consumer Financial Protection Bureau (CFPB) issued a release on March 16, 2022, announcing modifications to its supervisory operations that expand its monitoring of  discriminatory lending and servicing practices.  The CFPB stated that it “will scrutinize discriminatory conduct that violates the federal prohibition against unfair practices” at banks and non-bank companies across the U.S. The [...]

March 18th, 2022|

CFPB Comments on Proposed Appraisal Standard Changes as Regulatory Focus on Appraisals Heightens

The Consumer Financial Protection Bureau (CFPB) expressed in a February 4, 2022, blog post its concern that some appraisers may not be aware of the non-discriminatory laws affecting the appraisal industry.  Further, the CFPB opined that The Appraisal Foundation (TAF), a non-governmental entity that sets appraisal standards, has not sufficiently addressed discriminatory prohibitions in its [...]

February 22nd, 2022|

Justice Department Announces New Initiative to Combat Redlining and Announces Settlement with Trustmark National Bank

The U.S. Department of Justice is launching a nationwide Combatting Redlining Initiative  to combat discriminatory lending practices, Attorney General Merrick Garland said on Friday. Garland said the illegal practice of "redlining," or avoiding lending to minority neighborhoods, remained a persistent problem, and the federal government was devoted more resources to identifying it and punishing lenders. [...]

October 22nd, 2021|

Cadence Bank Settles with DOJ, OCC Over Lending Discrimination Allegations

The Justice Department has announced a settlement with Houston-based Cadence Bank to resolve allegations that the bank engaged in lending discrimination by ‘redlining’ predominantly Black and Hispanic neighborhoods in the Houston area. The Department alleged that the bank engaged in redlining between 2013 and 2017 by avoiding providing loans and other home mortgage services in majority-Black [...]

September 1st, 2021|

HUD Issues Charge of Discrimination Against Mortgage Modification Company

The U.S. Department of Housing and Urban Development (HUD) recently charged a  California business for allegedly targeting Hispanic homeowners with illegal and discriminatory mortgage modification services.  HUD said that The House Lawyer, based in Redwood City, California, collected fees from Hispanic borrowers for loan modification services prior to completing the services, a violation of California law, while [...]

May 17th, 2021|

CFPB Rescinds 2020 Policy Statements Issued Due to COVID-19

On March 31, 2021, the Consumer Financial Protection Bureau (CFPB) rescinded seven recent policy statements and one bulletin in an effort to ensure compliance with consumer protection laws and reinforce its supervisory and enforcement authority. These rescissions went into effect April 1, 2021. The policy statements were designed to provide flexibility to financial institutions that faced [...]

April 7th, 2021|

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