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ARTICLE · 23 JUNE 2025

CFPB And DOJ Terminate Another Redlining Consent Order

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On June 2, the U.S. District Court for the Eastern District of Pennsylvania terminated a 2022 consent order and dismissed with prejudice the CFPB...

United StatesFinance and Banking
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
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On June 2, the U.S. District Court for the Eastern District of Pennsylvania terminated a 2022 consent order and dismissed with prejudice the CFPB and DOJ's redlining lawsuit against a nonbank mortgage lender. The motion to terminate the consent order, filed jointly by the CFPB and DOJ, asserted that the company had fulfilled its monetary and injunctive obligations under the order.

The underlying complaint alleged that the lender violated the Equal Credit Opportunity Act (ECOA), Regulation B, the Consumer Financial Protection Act (CFPA), and the Fair Housing Act (FHA) by redlining majority-minority neighborhoods in the Philadelphia metropolitan area between 2015 and 2019. The complaint alleged that the company maintained nearly all offices in majority-white neighborhoods, failed to market to communities of color, and discouraged prospective applicants on the basis of race, color, or national origin.

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