In June 2025, a federal district court judge presiding over a revived redlining case in the U.S. District Court for the Northern District of Illinois denied a joint motion to vacate a 2024 voluntary settlement between the Consumer Financial Protection Bureau (CFPB) and Townstone Financial Inc., a Chicago-based nonbank lender. In this article, Goodwin’s Jasmine Jean-Louis and Richard A. Sillett discuss the judge’s reasons for upholding the settlement over the parties’ objections as well as the factors companies should consider if they are seeking to vacate their settlements in the current legal and regulatory environment. In November 2024, the parties voluntarily entered into a settlement to resolve the CFPB’s allegations that Townstone had violated the Equal Credit Opportunity Act by engaging in discriminatory lending practices.
Read the Law360 article to learn what these rulings mean for companies navigating CFPB settlements and potential vacatur bids.