On May 28, 2015, the Consumer Financial Protection Bureau (“CFPB”) and the Department of Justice (“DOJ”) filed a joint complaint and proposed consent order against a national mortgage lender in the United States District Court for Northern District of California. The complaint alleges that the lender violated the Equal Credit Opportunity Act and the Fair Housing Act by charging higher broker fees on mortgage loans to African-American and Hispanic borrowers. The complaint estimates that approximately 14,000 African-America and Hispanic borrowers were subject to the increased fees between 2006 and 2011. The proposed consent order would require the lender to pay $9 million in compensatory damages to the allegedly harmed borrowers. It would also require that the lender continue to follow its non-discretionary broker compensation policies and procedures and implement fair lending training and broker monitoring programs. The order is subject to the approval of the district judge.
Blog Enforcement Watch May 29, 2015