On January 17, 2025, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a proposed consent order with an Illinois-based non-depository mortgage lender, resolving allegations that the lender violated the Equal Credit Opportunity Act (ECOA), its implementing regulation, Regulation B, and the Consumer Financial Protection Act (CFPA). In a complaint simultaneously filed in the United States District Court for the Northern District of Illinois, the CFPB alleged that the lender located all of its offices in majority-white neighborhoods, avoided marketing to majority-Black and Hispanic areas, and had an internal compliance program that was inadequate to prevent and monitor for redlining.
Pursuant to the proposed order, if granted by the court, the lender agreed to pay a $1.5 million civil penalty, and to various conduct provisions, including oversight provisions applicable to its board of directors.
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