In late September, the CFPB and DOJ announced a proposed consent order with Hudson City Savings Bank to settle allegations that the bank had engaged in a pattern or practice of redlining in its residential mortgage lending. The settlement represents the largest federal court settlement for redlining in history as measured by loan subsidies provided to consumers.
A number of other financial institutions have entered into consent orders this year to settle allegations that they engaged in redlining – the practice of charging more for products or excluding altogether minorities within certain geographic areas. The agencies have stated that they have additional redlining investigations underway.
On January 13, 2016, four Ballard Spahr attorneys who are members of the firm’s Consumer Financial Services Group will conduct a webinar: “How Financial Institutions Can Prevent and Defend Against Redlining Fair Lending Claims.” The webinar will describe what financial institutions should learn from the Hudson City settlement and what the takeaways are for preventing and defending against redlining claims.
The webinar is hosted by the American Banker and National Mortgage News. A link to register is available here.