News & Analysis as of

Appeals Equal Credit Opportunity Act

Ballard Spahr LLP

Court Denies CFPB/Townstone Bid to Undo Consent Order

Ballard Spahr LLP on

As previously reported, in March 2025 the CFPB and Townstone Financial (Townstone) filed a joint motion with a U.S. District Court seeking to reverse the November 2024 consent order between the parties that resolved CFPB...more

Troutman Pepper Locke

Fifth Circuit Agrees to Dismiss CFPB’s UDAAP Examination Manual Appeal, Aligning with Bureau’s New Regulatory Priorities

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On May 1, the U.S. Court of Appeals for the Fifth Circuit dismissed the Consumer Financial Protection Bureau’s (CFPB or Bureau) appeal concerning the vacated amendments to its Unfair, Deceptive, or Abusive Acts and Practices...more

Sheppard Mullin Richter & Hampton LLP

CFPB Moves to Vacate ECOA Settlement Against Illinois-based Mortgage Lender

On March 26, the CFPB filed a motion to vacate its recent settlement against an Illinois-based mortgage lender accused of engaging in discriminatory marketing practices in violation of the Equal Credit Opportunity Act (ECOA)...more

Sheppard Mullin Richter & Hampton LLP

Second Circuit Upholds Reverse Redlining Verdict Against Mortgage Lender

On February 14, a divided Second Circuit panel upheld a 2016 jury verdict which found that a mortgage lender violated, among other laws, the Equal Credit Opportunity Act (“ECOA”) by engaging in “reverse redlining” when it...more

Venable LLP

Fifth Circuit Places Partial Stay on CFPB Small Business Lending Rule Amid Leadership Change

Venable LLP on

The Fifth Circuit Court of Appeals heard arguments in early February challenging the validity of the Consumer Financial Protection Bureau's (CFPB Small Business Lending Rule. The rule is being challenged by various industry...more

Carlton Fields

Florida Appeals Court Decisions Week of February 3 - 7, 2025

Carlton Fields on

U.S. Eleventh Circuit Court of Appeals - Daniels v. Fla Fish & Wildlife - fishing regulations, constitutional challenges, standing - Glover v. Ocwen Loan Serv - FDCPA, mortgage payment fees - Rosado v. Sec’y US Navy...more

Bradley Arant Boult Cummings LLP

Appeals Court Holds ECOA Liability Extends to Prospective Applicants

On July 11, 2024, the United States Court of Appeals for the Seventh Circuit issued its highly anticipated decision in Consumer Financial Protection Bureau v. Townstone Financial, Inc., et al. In this pivotal decision, the...more

Sheppard Mullin Richter & Hampton LLP

CFPB Wins Big Reversal in Illinois Redlining Lawsuit

On July 11, the Seventh Circuit Court of Appeals reversed a lower court’s decision dismissing a CFPB action against an Illinois-based mortgage lender and its owner for violations of the Equal Credit Opportunity Act....more

Ballard Spahr LLP

CFPB removes changes regarding discrimination as an unfair practice from UDAAP exam manual but appeals from district court order...

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In September 2023, the CFPB updated its UDAAP Examination Manual to remove the changes it made in March 2022 which provided that unfair acts or practices encompassed discriminatory conduct, even in circumstances to which...more

Goodwin

CFPB Files Opening Brief in its Appeal of District Court Ruling that ECOA Applies Only to Applicants

Goodwin on

On June 14, 2020, the Consumer Financial Protection Bureau (CFPB) filed its opening brief in its appeal of a U.S. district court’s decision in the CFPB’s enforcement action against Townstone Mortgage (Townstone). The CFPB’s...more

Bilzin Sumberg

Eleventh Circuit Holds that a Guarantor Lacks Standing Under the Equal Credit Opportunity Act

Bilzin Sumberg on

Late last month, the U.S. Court of Appeals for the Eleventh Circuit held in Regions Bank v. Legal Outsource PA, No. 17-11736, 2019 WL 4051703 (11th Cir. Aug 28, 2019), that a loan guarantor does not qualify as an “applicant”...more

Ballard Spahr LLP

SCOTUS Grimm decision could impact CFPB position on ECOA protection for gender identity and sexual orientation

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On October 28, 2016, the U.S. Supreme Court granted the petition for a writ of certiorari in Grimm v. Gloucester County School Board, a decision of the U.S. Court of Appeals for the Fourth Circuit that marked the first time...more

Poyner Spruill LLP

Eighth Circuit Finds Guarantors Not Afforded Protections under the Equal Credit Opportunity Act

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The application of the Equal Credit Opportunity Act (ECOA) to spousal guaranties is a developing area of law, resulting in a number of recent appellate opinions. One opinion from the Eighth Circuit Court of Appeals, Hawkins...more

Womble Bond Dickinson

N.C. Supreme Court Issues Significant Ruling On Commercial Forbearance Agreements and Spousal Guaranties

Womble Bond Dickinson on

On August 20, 2014, the North Carolina Supreme Court issued an opinion giving great weight to properly-drafted forbearance agreements in a commercial loan and guaranty context. RL REGI N.C., LLC v. Lighthouse Cove, LLC, No....more

Lathrop GPM

8th Circuit Rules ECOA Does Not Apply to Guarantors of Loans

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After argument before the U.S. Court of Appeals for the 8th Circuit in Hawkins v. Community Bank of Raymore, Case No. 13-3065, Lathrop & Gage attorneys Tom Stahl, Greer Lang and Justin Nichols obtained a ruling that the Equal...more

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