In a joint statement of interest filed in the District Court of Maryland, the two regulators said a lender relying on an appraisal that it knows, or should know, is discriminatory violates both the ECOA and the Federal Housing Act.
RMK Financial/Majestic Home Loans continued to use advertisements that led consumers to believe it was affiliated with the FHA or VA in violation of a 2015 consent order.
The Appraisal Foundation plans to revise ethics rule draft; CashCall faces $169 million in restitution and fines; companies not reporting credit card payment data; public benefits programs subject to fees; CFPB, FTC seek input on tenant background checks; DOJ redlining settlement.
The Community Home Lenders of America wants small mortgage lenders to be exempt from the CFPB’s proposed registry of nonbank form contracts when their compliance burdens substantially outweigh consumer benefit.
The CFPB and other regulators in a joint comment letter raised concerns that the most recent draft of the Appraisal Foundation’s guidelines for appraisers removes clarity on federal discrimination prohibitions.
The study found that the Community Reinvestment Act has had little effect on the level of household borrowing in low- to moderate-income census tracts and on lending in different debt categories.
The CFPB sued Chicago-based Townstone Financial in 2020, alleging that statements made on its radio show discouraged Black prospective applicants from applying for mortgage loans.
CFPB Director Rohit Chopra reiterated his long-held argument that automation alone cannot remove bias from home appraisals. Others discussed actions to address appraisal bias.