The Consumer Financial Protection Bureau (CFPB) and the Justice Department (DOJ) filed a complaint against and a proposed settlement with Fairway Independent Mortgage Corp. related to allegations the lender illegally redlined Black neighborhoods in Birmingham, Ala., via its marketing and sales actions.
Fairway will be required to pay a $1.9 million civil penalty to the CFPB’s victims relief fund, the agencies stated, as well as provide $7 million for a loan subsidy program to offer affordable home purchase, refinance, and home improvement loans in majority-Black neighborhoods.
“The CFPB and DOJ are holding Fairway accountable for redlining Black neighborhoods,” CFPB Director Rohit Chopra said. “Fairway’s unlawful redlining discouraged families from seeking loans for homes in Birmingham’s Black neighborhoods.”
The CFPB and DOJ alleged Fairway violated the Equal Credit Opportunity Act, the Consumer Financial Protection Act, and the Fair Housing Act.
Check back as RESPA News will provide more details on this developing news shortly.
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