CFPB and DOJ File Complaint and Consent Order Against National Mortgage Lender

CFPB  •  DOJ  •  ECOA  •  Mortgage

​On May 28, 2015, the Consumer Financial Protection Bureau (“CFPB”) and the Department of Justice (“DOJ”) filed ​a joint complaint and proposed consent order​ against a national mortgage lender in the United States District Court for Northern District of California. The complaint​ alleges that the lender violated the Equal Credit Opportunity Act and the Fair Housing Act by charging higher broker fees on mortgage loans to Afri​can-American and Hispanic borrowers. The complaint estimates that approximately 14,000 African-America and Hispanic borrowers were subject to the increased fees between 2006 and 2011. The proposed consent order would require the lender to pay $9 million in compensatory damages to the allegedly harmed borrowers. It would also require that the lender continue to follow its non-discretionary broker compensation policies and procedures and implement fair lending training and broker monitoring programs. The order is subject to the approval of the district judge.

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