First National Bank of Pennsylvania’s $13.5 million settlement with the DOJ and North Carolina didn’t include a civil monetary penalty. DOJ officials stressed that more redlining enforcement is in the works.

The DOJ sees its latest redlining settlement as sending a strong message to banks. Washington Trust downplayed the matter, noting no civil monetary penalty was required.

The New York-based financial firm admitted to providing false pricing information to residential MBS clients between 2009 and 2013. It also agreed to cooperate with investigations into former employees.

The Obama-era task force set up to investigate MBS fraud that contributed to the 2008 crisis has finished its job. Its efforts led the DOJ to collect $36 billion in penalties from banks, originators and rating agencies.

Experts call for ongoing, intentional and collaborative efforts across federal agencies to combat racial disparities in homeownership and access to housing financing.

The False Claims Act violations related to underwriting and quality control on FHA and VA loans, the Department of Justice said.

Two former Movement employees triggered the investigation against the lender when they filed a whistleblower civil action in 2018.

The CFPB’s efforts to combat redlining include a new emphasis on discriminatory targeting. The regulator’s argument for the application of ECOA in instances of reverse redlining is being questioned.

The MBA submitted a brief in court pointing out flaws with legal arguments from the CFPB and DOJ regarding the liability lenders face from appraisers.

The bank has been addressing fraud in its non-QM program since late 2019. The cleanup has involved fines, settlements, buybacks and the departure of more than 100 officers and employees.