Redlining

The high court, without comment, refused Emigrant Mortgage's appeal of a verdict holding it liable for no income, no asset verification loans to minorities.

A judge ruled the Pennsylvania lender had to commit to its increased fair lending obligations for three more years, as it wouldn't harm the public interest.

Poor credit is a barrier for many Black homebuyers, blocking them from mortgages and contributing to racial gaps in homeownership.

Three fair housing firms disagree that the DOJ should end a redlining consent order against Lakeland Bank, arguing the firm hasn't done enough. The bank disputes those claims.

Opposition is growing to the Trump administration's efforts to roll back fair lending requirements for lenders imposed by Biden-era prosecutors.

A Trump-appointed judge refused to dismiss a settlement between the Consumer Financial Protection Bureau and a Chicago mortgage lender over lending practices that an appeals court already said violated the Equal Credit Opportunity Act.

The Department of Justice is seeking to terminate a Biden-era lending discrimination settlement with Lakeland Bank. Last month, the DOJ took similar action in a case involving Mississippi-based Trustmark National Bank.

Cases involving accusations of redlining, kickbacks, underpaid employees and more swept across the mortgage industry in recent months.

The Consumer Financial Protection Bureau released a proposed version of the consent order on Jan. 17 and the company involved said it was finalized that day.

Plaintiffs want to certify a class of 119,100 minority mortgage customers who were unfairly deprived of ultra-low mortgage rates during the refi boom.

The Consumer Financial Protection Bureau and Department of Justice issued a consent order against Wisconsin-based nonbank mortgage originator Fairway Independent Mortgage over redlining allegations. Fairway is the country's fifth-largest mortgage originator by volume.

OceanFirst's own press release points out the federal government has obtained $120 million in relief in similar cases since 2021.

Nikitra Bailey, EVP at the National Fair Housing Alliance, says communities of color are more vulnerable to the impacts of climate change because of prior redlining practices. She explains that a HUD rule could make a big difference.

The Justice Department and the CFPB are increasingly relying on emails among employees that contain discriminatory comments to strengthen their hand in cases against lenders.

First National Bank of Pennsylvania, a unit of FNB Corp., ran into trouble in connection with North Carolina operations it acquired from Yadkin Financial in 2017.

As part of a settlement with the Justice Department, Patriot Bank must invest more than $1 million of the total in a loan subsidy fund for minority homeowners and take other corrective steps in its everyday business. The bank denied any wrongdoing.

Internet-based banks are siphoning deposits away from urban centers in the U.S. and, unlike brick-and-mortar banks, face no requirement that they loan money back into those communities.

The Department of Justice alleged that Ameris failed to open a single bank branch or provide home loans in minority neighborhoods in Jacksonville, Florida. Attorney General Merrick Garland said that many similar redlining investigations are currently underway.

American Bank of Oklahoma agreed to a consent order in August to settle allegations from the Department of Justice over redlining. However, the institution strenuously objected to references to the Tulsa Race Massacre in the agreement and asked that the language be stricken.

Two separate programs providing as much as $10,000 in assistance are open to eligible borrowers in the Philadelphia area.