News & Analysis as of

Department of Justice (DOJ) Fair Housing Act (FHA) Mortgage Lenders

Ballard Spahr LLP

Federal Judge rejects request to release ESSA Bank from redlining settlement

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A federal judge has rejected the Trump Administration’s request to release from court supervision a bank that had been accused of discriminatory lending....more

Sheppard Mullin Richter & Hampton LLP

CFPB and DOJ Terminate Another Redlining Consent Order

On June 2, the U.S. District Court for the Eastern District of Pennsylvania terminated a 2022 consent order and dismissed with prejudice the CFPB and DOJ’s redlining lawsuit against a nonbank mortgage lender. The motion to...more

Sheppard Mullin Richter & Hampton LLP

DOJ and CFPB Terminate $9 Million Redlining Consent Order with Southern Regional Bank

On May 21, the U.S. District Court for the Western District of Tennessee granted a joint motion by the CFPB and DOJ to terminate a 2021 redlining settlement with a regional bank, vacating the consent order and dismissing the...more

Sheppard Mullin Richter & Hampton LLP

DOJ Announces Third Settlement with a Non-Depository Lender to Resolve Alleged Redlining Claims

On January 7, 2025, the United States Department of Justice (the “DOJ”) announced that a non-depository mortgage lender has agreed to pay $1.75 million in connection with allegations that it engaged in a pattern or practice...more

Goodwin

CFPB Reverse-Redlining Claim Survives Dismissal in Colony Ridge

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​​​​​​​On September 13, 2024, the United States District Court for the Southern District of Texas granted in part and denied in part the defendants’ motion to dismiss in CFPB v. Colony Ridge, Case No. 4:23-cv-04729....more

Alston & Bird

Appraisal Bias Settlement: Potential Roadmap

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What Happened? The lender and consumers reached a settlement in an appraisal bias case, Nathan Connolly and Shani Mott v. Shane Lanham, 20/20 Valuations, LLC, and loanDepot.com, LLC, filed in Maryland District Court, that...more

Troutman Pepper Locke

DOJ Reaches $1.15 Million Redlining Settlement With American Bank of Oklahoma

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On August 28, the U.S. Department of Justice (DOJ) announced its eighth redlining settlement under its Combatting Redlining Initiative. The settlement between the DOJ and the American Bank of Oklahoma, which originated from a...more

Goodwin

DOJ Reaches Settlement Over Bank’s Alleged Redlining

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On May 31, 2023, the United States Department of Justice (DOJ), announced that it had entered into a settlement with a Philadelphia based bank and trust company over allegations that the bank had engaged in unlawful redlining...more

Troutman Pepper Locke

DOJ’s Combatting Redlining Initiative Continues With $9 Million Settlement With Park National Bank

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On February 28, the U.S. Department of Justice (DOJ) announced its sixth redlining settlement under its Combatting Redlining Initiative. This most recent case involves an agreement between the DOJ and Ohio-based Park National...more

Orrick, Herrington & Sutcliffe LLP

DOJ settles with bank for $31 million to resolve alleged redlining allegations

On January 12, the DOJ announced a more than $31 million settlement with a national bank over redlining allegations. Calling the action the largest redlining settlement agreement in the department’s history...more

Sheppard Mullin Richter & Hampton LLP

CFPB, DOJ Propose $22 Million Penalty Against Nonbank Mortgage Lender for Illegal Redlining

On July 27, the CFPB and DOJ proposed a settlement with a nonbank mortgage lender for its discriminatory “redlining” lending practices against minority families living in the greater Philadelphia area...more

Goodwin

CFPB and DOJ Order Mortgage Company to Pay Over $22 Million for Advertising and Marketing Discrimination

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​​​​​​​On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) filed a complaint and proposed consent order in a federal district court alleging that a mortgage company...more

Nelson Mullins Riley & Scarborough LLP

DOJ Redlining Initiative Revealed

For the past six months, we have received calls from banks and non-depository mortgage lenders regarding Department of Justice (“DOJ”) investigations into mortgage lending discrimination. These DOJ inquiries are bypassing the...more

Hudson Cook, LLP

Fair Lending Developments: Disparate Impact Lives On

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[co-author: John Ropiequet] The fair lending cases filed by Miami against four major mortgage lenders, reported in several previous Annual Surveys, came to a sudden, anticlimactic end when the city voluntarily dismissed...more

Hudson Cook, LLP

Fair Lending Developments in the Wake of City of Miami

Hudson Cook, LLP on

[co-author: John L. Ropiequet] The fair lending cases filed by Miami against large mortgage lenders in 2013, in which the city sought to recover lost property tax revenues and increased municipal expenses allegedly caused...more

Goodwin

DOJ Announces $15 Million Settlement with Mortgage Originator Over Alleged FCA Violations

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On April 29, the Department of Justice (DOJ) announced that it settled allegations that an Illinois-based mortgage lender violated the False Claims Act (FCA), the Financial Institutions Reform, Recovery and Enforcement Act...more

Alston & Bird

Slaying the Monster? Reduced Risk of False Claims Act Prosecution for FHA Lenders

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A&B Abstract: In an effort to incent large depository institutions to return to FHA lending, the U.S. Department of Housing and Urban Development (“HUD”) and the U.S. Department of Justice (“DOJ”) entered into a Memorandum...more

Bradley Arant Boult Cummings LLP

HUD and DOJ Release Memorandum on the Application and Enforcement of FHA Violations Involving the False Claims Act

In an effort to provide clarity and certainty to Federal Housing Administration (FHA) approved lenders, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) jointly issued a...more

Buchalter

HUD and DOJ Release Guidance on False Claims Act

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On Monday, October 28, Attorney General William Barr and Department of Housing and Urban Development Secretary Ben Carson signed a memorandum of Understanding (MOU) between the Department of Justice (DOJ) and HUD. The MOU...more

Ballard Spahr LLP

DOJ settles redlining lawsuit against First Merchants Bank

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The U.S. Department of Justice announced last Thursday that it had reached an agreement with First Merchants Bank, an Indiana state-chartered bank, to settle the redlining lawsuit that the DOJ filed against the bank on June...more

Goodwin

DOJ Investigates FHA Loans Issued by Florida-Based Mortgage Subsidiary

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On January 25, 2018, a Florida-based homebuilder filed its Form 10-K annual report with the Securities and Exchange Commission (SEC), disclosing that its “mortgage subsidiary has been subpoenaed by the United States...more

Goodwin

National Lender Settles False Claims Act Allegations with DOJ for Over $74 Million

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On August 8, 2017, the Department of Justice (DOJ) announced that a national lender agreed to settle allegations that it violated the False Claims Act. The settlement resolves allegations that the lender originated and...more

Ballard Spahr LLP

Community banks trade group asks Trump Administration to curb fair lending enforcement

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The Independent Community Bankers of America issued a statement calling on the Trump administration “to rein in the overzealous application of fair lending laws.” ICBA stated that community banks are threatened by a recent...more

Ballard Spahr LLP

DOJ Files Redlining Lawsuit Against KleinBank

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The U.S. Department of Justice (DOJ) recently commenced a redlining lawsuit against KleinBank, a state-chartered Minnesota bank subject to the regulatory authority of the Federal Deposit Insurance Corporation (FDIC). The...more

Goodwin

DOJ Settles Mortgage Discrimination Lawsuit Against National Bank for $54 Million

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On January 20, the U.S. Attorney’s Office for the Southern District of New York (USAO) announced that it had settled a recently-filed lawsuit against a national bank, resolving allegations of mortgage discrimination. As...more

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