7th Circuit Court grants CFPB broader authority to fight housing discrimination at Townstone Financial.
The US 7th Circuit Court of Appeals has given the Consumer Financial Protection Bureau (CFPB) greater authority to fight housing discrimination, specifically redlining. The court revived the CFPB's first such case against non-bank mortgage lender Townstone Financial, allowing the agency to prove that the company and its co-founder violated the Equal Credit Opportunity Act (ECOA) by discouraging Blacks from applying for mortgage loans. The court stated that the CFPB can target not only mortgage applicants but also prospective applicants discouraged by the lender's actions.
July 11, 2024
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