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Racial bias

CFPB sued over new rule that would weaken fair-lending laws

CFPB sued over new rule that would weaken fair-lending laws

Consumer lending, Law and regulation, Racial bias, Regulation and compliance /

Russell Vought, acting director of the Consumer Financial Protection Bureau.Bloomberg News Processing Content Key insight: The new CFPB rule protects lenders from being penalized for unintentional discrimination, including in cases involving automated algorithms and credit models. What’s at stake: The new rule narrows the legal definition of “discouragement,” making it easier for banks to avoid […]

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Judge OKs Wells Fargo’s $100 million mortgage borrower fund

Law and legal issues, Originations, Racial bias, Regulation and compliance /

Wells Fargo will fund a new $100 million mortgage borrower assistance fund, following a federal judge’s final approval of a large settlement agreement.  Processing Content U.S. District Judge Trina Thompson OK’ed the terms last week, which resolved some longstanding claims regarding the bank’s alleged discriminatory hiring and lending practices. The agreement also includes a $10

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HUD says sharing crime, school data doesn’t violate Fair Housing Act

HUD says sharing crime, school data doesn’t violate Fair Housing Act

Fair Housing Act, HUD, Politics and policy, Racial bias, Regulation and compliance /

The U.S. Department of Housing and Urban Development sent a letter to real estate professionals to assure them they are not violating the Fair Housing Act when sharing information with potential homebuyers about neighborhood crime rates and school quality. Processing Content Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor explained in the letter

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Study finds racial gaps in Wells Fargo mortgage denials

Originations, Politics and policy, Racial bias, Wells Fargo /

Wells Fargo’s mortgage lending patterns exhibit racial disparities that hurt minority families, multiple activist organizations say. Processing Content The mega bank denied Black, Latino and Asian mortgage applicants roughly twice as frequently as white applicants, according to a new study that analyzed almost 25,000 North Carolina mortgage applications and more than 16,000 loans at Wells

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CFPB finalizes new ECOA rule in major fair lending pivot

Fair Housing Act, Lending, Politics and policy, Racial bias, State regulators /

Key insight: The CFPB claims that the Equal Credit Opportunity Act does not include statutory language that would allow for a so-called “disparate impact” test for instances of unintended discrimination.  What’s at stake: The changes don’t let lenders off the hook entirely. States such as California, Massachusetts and New Jersey maintain strict anti-discrimination rules, creating

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Bank of America, appraiser sued for discrimination

Law and legal issues, Racial bias /

A homeowner is suing Bank of America and an appraisal firm for racial discrimination, the latest appraisal bias lawsuit against a major lender.  Processing Content Darchelle Braxton, a Black woman, sued the businesses last week in federal court for violating the Fair Housing Act and the Equal Credit Opportunity Act in handling her mortgage application

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How Trump is turning fair lending law on its head

Gender discrimination, Politics and policy, Racial bias, Regulation and compliance, Trump administration /

What’s at stake: The Trump administration is trying to weaken the Equal Credit Opportunity Act, the Fair Housing Act, the Home Mortgage Disclosure Act and the implementation of small business lending data collection, known as section 1071 under the Dodd Frank Act. Key insight: Lenders have long complained that the federal government should not be

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Judge denies motion to halt racial equity mortgage program

Industry News, Law and legal issues, Originations, Racial bias /

A federal district court in Washington State denied a claim for a preliminary injunction in a lawsuit to halt a special-purpose credit program aimed at addressing racial disparities in homeownership rates  Processing Content Nonprofit advocacy group Foundation Against Intolerance and Racism first filed suit in late 2024 against the Washington State Housing Finance Commission. Founded

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CFPB to gut indirect discrimination in civil rights rule

CFPB to gut indirect discrimination in civil rights rule

Compliance, Enforcement, Racial bias, Regulation and compliance /

Al Drago/Bloomberg What’s at Stake: The bureau acknowledges that the elderly, minorities and people with low incomes may be harmed by the changes. Expert Quote: The proposed rule “will effectively invite a return to redlining and exclusion,” said Jesse Van Tol, president and CEO of the National Community Reinvestment Coalition. Key Insight: The CFPB claims the

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Black homeowners lose ground as job losses mount

MARKETING TO BORROWERS, Originations, Racial bias /

Black homeowners, who already face long-term disadvantages in the housing market, are losing more ground.  The Black homeownership rate fell this summer to its lowest rate since late 2021, according to Redfin. The brokerage, now a Rocket Cos. affiliate, cited annual unemployment figures, which are higher for both Black men and women than other ethnic

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