Enforcement Update

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FDIC highlights RESPA kickback issues in supervisory report

Posted Date: Monday, April 10, 2023

In its Consumer Compliance Supervisory Highlights, the Federal Deposit Insurance Corp. noted enforcement actions it took in 2022 related to RESPA and the Fair Credit Reporting Act.

TILA was the most frequently cited statute for enforcement, totaling 35 percent of all violations last year.

Read on to learn what RESPA violations the agency addressed in 2022.

Enforcement Update

DOJ, Alabama housing authority agree to anti-discrimination settlement

Posted Date: Monday, January 2, 2023

The Department of Justice (DOJ), the Housing Authority of Ashland, Ala., and two local property owners have received approval for their consent order by the U.S. District Court for the Northern District of Alabama.

The DOJ had brought charges against the group after an investigation revealed alleged discrimination on the basis of race.

Read on for more details.

Enforcement Update

Wells Fargo ordered to pay $3.7B by CFPB

Posted Date: Thursday, December 22, 2022

The Consumer Financial Protection Bureau ordered Wells Fargo to pay more than $2 billion in consumer redress and a $1.7 billion civil penalty for legal violations.

The bureau found the bank committed several acts affecting over 16 million customer accounts, including the misapplication of loan payments, wrongful foreclosure, and surprise overdraft fees.

Read on for more details about the order.

Enforcement Update

CFPB takes enforcement action against Carrington Mortgage

Posted Date: Monday, November 21, 2022

The Consumer Financial Protection Bureau is taking action against Carrington Mortgage Services, stating the servicer engaged in deceptive acts or practices under the Consumer Financial Protection Act and violated the Fair Credit Reporting Act and its implementing statute Regulation V.

The consent order is related to actions Carrington took to mislead certain homeowners who sought a CARES Act forbearances.

Read on for more details.

Enforcement Update

HUD finds Oklahoma housing providers engaged in discrimination

Posted Date: Monday, November 21, 2022

The U.S. Department of Housing and Urban Development (HUD) issued a letter of finding against an Oklahoma housing provider and the property management company, both recipients of HUD funds.

The agency found the entities discriminated against tenants by failing to appropriately respond to known serious racial harassment and retaliated against affected tenants by moving to terminate their tenancy.

Read on for more details.

Enforcement Update

DOJ settles New Orleans-based disability discrimination suit

Posted Date: Thursday, October 13, 2022

The Department of Justice reached a settlement with the Housing Authority of New Orleans and seven private developers in a case alleging the entities violated the Fair Housing Act and the American with Disabilities Act.

The defendants allegedly failed to design and construct eight multifamily residential properties and associated places of public accommodation to be accessible to persons with disabilities. In addition to the monetary settlement, the defendants also agreed to remove accessibility barriers at the properties.

For more details about the case, read on.

Enforcement Update

Discrimination charge filed against NY co-op owners

Posted Date: Thursday, October 13, 2022

The U.S. Department of Housing and Urban Development (HUD) charged the owners of a New York co-op with discrimination, alleging they refused to rent to a person with disabilities because of their use of an assistance animal. “Reasonable accommodations, such as allowing assistance animals, ensure that people with disabilities have equal access to housing opportunities,” HUD Principal Assistant Deputy Secretary for Fair Housing and Equal Opportunity Demetria McCain said. “Today’s charge demonstrates HUD’s ongoing commitment to take appropriate action when housing providers fail to comply with our nation’s fair housing laws.” For more details about the charge, read on.

Enforcement Update

DOJ settles discrimination complaint against Memphis bank

Posted Date: Monday, October 10, 2022

The U.S. Department of Justice Department reached an agreement to with Memphis, Tenn.-based Evolve Bank & Trust settling allegations its engaged in lending discrimination based on race, sex and national origin in the pricing of its residential mortgage loans.

Under the department’s settlement, which is subject to the approval of the District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers. Evolve Bank will also pay a $50,000 civil penalty.

Read on for more information.

Enforcement Update

Money transfer company fined $950,000

Posted Date: Monday, October 10, 2022

The Consumer Financial Protection Bureau has penalized Choice Money Transfer for violations of the Remittance Transfer Rule and the Electronic Fund Transfer Act.

According to the bureau, the company did not accurately disclose important prepayment information to remittance senders, such as money transfer fees, current exchange rates and the date the recipient would receive the funds.

Read on for more details.

Enforcement Update

DOJ, New Jersey bank settle redlining complaint

Posted Date: Thursday, October 6, 2022

The U.S. Department of Justice (DOJ) announced an agreement to resolve allegations that Lakeland Bank engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey.

The DOJ said the settlement is the third-largest redlining settlement in department history.

Read on for more details.

Enforcement Update