CFPB Accuses Chicago Mortgage Lender Of Redlining

Law360 (July 15, 2020, 11:12 PM EDT) -- The Consumer Financial Protection Bureau on Wednesday filed a complaint in Illinois federal court accusing a Chicago-area mortgage lender of redlining and disparaging majority-Black neighborhoods in infomercial commentary, marking the agency's first new fair lending-related enforcement action in more than a year. 

In its complaint, the CFPB alleges Townstone Financial Inc. engaged in discriminatory conduct from 2014 to 2017 that resulted in it receiving far fewer applications from prospective Black borrowers and far fewer applications for homes in Black neighborhoods than other mortgage lenders operating in the Chicago metropolitan area.

"Specifically, during its weekly marketing radio shows and podcasts, Townstone made...

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