Regulatory News
CFPB and DOJ Settle Redlining Claims Against Non-Depository Mortgage Companies Before Change in Administration
Why Redlining Risk Should Continue to Be a Focus During the Next Administration Guest analysis. This article was written by Richard Horn of Garris Horn LLP and first published on 20 January 2025. The first-person voice throughout is the author’s, not RATA’s. Primary sources for the two settlements it discusses are the CFPB enforcement action against Draper & Kramer Mortgage Corporation (17 January 2025) and the Justice Department’s settlement with The Mortgage Firm, Inc. (7 January 2025), with the case documents on the DOJ’s United States v. The Mortgage Firm page (S.D. Fla.). Facts from the CFPB's 17 January 2025 enforcement action and the Justice Department's 7 January 2025 and 10 October 2024 announcements, as cited in this article. …
CFPB, DOJ Order Trident Mortgage Company to Pay More Than $22 Million for Deliberate Discrimination Against Minority Families
Settlement is the first government resolution involving illegal discrimination by a nonbank mortgage lender Washington, D.C. – Today, 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 figures and allegations below are drawn from the CFPB enforcement action against Trident Mortgage Company, LP and the accompanying consent order, filed 27 July 2022 in the U.S. District Court for the Eastern District of Pennsylvania as case No. 2:22-cv-02936, together with the Justice Department announcement of the same date. The CFPB and DOJ allege Trident redlined majority-minority neighborhoods…
CFPB, DOJ and OCC Take Action Against Trustmark National Bank for Deliberate Discrimination Against Black and Hispanic Families
Trustmark to Pay $5 Million Penalty and $3.85 Million to Increase Mortgage Credit Access in Memphis Neighborhoods Impacted by Redlining WASHINGTON, D.C. — 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 Hispanic neighborhoods in the Memphis metropolitan area. The allegations and figures below come from the CFPB announcement of 22 October 2021 and the consent order in United States v. Trustmark…
CONSUMER FINANCIAL PROTECTION BUREAU ANNOUNCES SETTLEMENT WITH WASHINGTON FEDERAL BANK, N.A. FOR FLAWED MORTGAGE-LOAN DATA REPORTING
WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (Bureau) settled with Washington Federal Bank, N.A., a federally insured national bank, to address the Bureau's finding that it reported inaccurate Home Mortgage Disclosure Act (HMDA) data about its mortgage transactions for 2016 and 2017. Inaccurate HMDA data can make it difficult for the public and regulators to discover and stop discrimination in home mortgage lending or for public officials and lenders to tell whether a community's credit needs are being met. The settlement requires Washington Federal to pay a $200,000 civil money penalty and develop and implement an effective compliance-management system to prevent future violations. The Bureau found that Washington Federal, headquartered in Seattle,…
HMDA enforcement defanged by Trump-led regulators
December 22, 2018 It's been a major issue for our industry. In fact, one of our feature stories for the December magazine, written by our Managing Editor Sarah Wheeler, details the new risks HMDA reporting represents for lenders. And earlier this year HousingWire warned lenders that if they think compliance is hard now, just wait until the new HMDA regulations kick in. Most of the 2015 updates to HMDA take effect in January 2018. However, now, both the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau — both now led by Trump-administration leaders (more, below) — announced they will not be assessing penalties on HMDA data collected in 2018 and reported in 2019. What's more, the CFPB also intends to open a rulemaking to reconsider…
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