b'because nine of the 10 counts from the CFPBs casesimultaneously filed on August 30 in the U.S. District overlapped with claims resolved by the companysCourt for the Northern District of Georgia. Under prior national mortgage settlement with the CFPB, andthe consent order, Cadence Bank must engage a therefore were barred by principles of res judicata. As aqualified third-party consultant to evaluate its fair result, the court ruled that the CFPB could only pursuelending program and assist the bank in developing a small fraction of its casea single count for whicha Fair Lending Plan. The bank also was ordered to judgment was not granted and only servicing conductprovide fair lending training to its employees, and to from after the February 2017 expiration of the nationalinvest a minimum of $4.17 million into a loan subsidy mortgage settlement on the nine counts for whichprogram to increase the credit that the bank offers partial judgment was granted. The CFPB subsequentlyfor home mortgage loans to residents in majority-amended its complaint to drop the remnants of its case,Black and Hispanic neighborhoods in the Houston and the court entered full judgment in favor of Ocwen.area. Additionally, the bank was ordered to partner The CFPB has appealed the final judgment, and thatwith one or more community-based or governmental appeal is currently pending in the Eleventh Circuit.originations that provide the residents of majority-Black and Hispanic neighborhoods in the Houston OCC Issues $250 Million Penalty Related to Wellsarea with homeownership services and through Fargos Loss Mitigation Practicesthese partnerships spend a minimum of $750,000 In September, the OCC announced that it issuedon services to those residents, and to spend at least a $250 million civil money penalty on Wells Fargo$625,000 on advertising, outreach, consumer financial Bank, N.A. concerning alleged deficiencies in theeducation, and credit repair initiatives targeted at those banks home lending loss-mitigation program, and forcommunities. In addition to its consent order with the purportedly failing to meet its obligations under a 2018DOJ, the bank was assessed a $3 million civil money consent order that the bank entered with the OCC andpenalty by the OCC. the CFPB. As reported by Enforcement Watch, the bank previously entered a consent order in 2018 with theCFPB, DOJ, and OCC Resolve Redlining Allegations CFPB and the OCC based on purported deficienciesAgainst Trustmark National Bankin the banks enterprise-wide compliance riskIn October, the CFPB and the DOJ, working in management program. The current penalty and relatedcooperation with the OCC, announced a settlement with cease and desist order address similar conduct relatedTrustmark National Bank, a Mississippi-based lender, to the banks purported failure to establish an effectiveto resolve allegations that the lender violated the FHA, home lending loss mitigation program. Under the termsECOA, and CFPA. Specifically, the agencies alleged the of the cease and desist order, the bank must pay alender discriminated against borrowers in Black and $250 million fine and is limited in future loss mitigationHispanic neighborhoods by intentionally not offering and servicing-related activities until it addressesor originating loans to consumer in certain areas in the specific issues in mortgage servicing.Memphis metropolitan area. The consent order requires the lender to invest $3.85 million in a loan subsidy DOJ and OCC Obtain $8.5 Million Settlementprogram to offer loans to potential borrowers seeking with Cadence Bank N.A., Resolving Allegations ofto purchase property in majority-Black and Hispanic Lending Discrimination neighborhoods, as well as to increase advertising and In August, the DOJ announced that, together withoutreach to these same communities. The order also the OCC, it reached a settlement with Cadence Bankrequires the lender to pay a $5 million civil penalty and N.A. to resolve allegations that the bank engaged incomply with all fair lending laws.lending discrimination in the Houston area. In 2017, the OCC initiated a fair lending examination of the bank. Two years later, the OCC referred the matter to the DOJ after determining that the bank had likely violated the Fair Housing Act (FHA). The DOJ alleged that the bank violated the FHA and the Equal Credit Opportunity Act (ECOA) by engaging in redlining from 2013 through 2017. Specifically, the DOJ alleged that the bank avoided providing home loans and other home mortgage services in majority-Black and Hispanic neighborhoods, located and maintained nearly all of its branches in majority-white neighborhoods, and concentrated its marketing, outreach, and advertising in majority-white neighborhoods. The complaint and a consent order resolving the allegations were 17'