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DOJ announces major new initiative targeting redlining; DOJ/CFPB/OCC settle redlining lawsuit against Mississippi-based national bank

CFPB Monitor

The Biden Administration’s prioritization of fair lending as a law enforcement focus took center stage last week with the announcement that the U.S. Attorneys’ Offices “as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.”.

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After buying bank accused of redlining, Cadence gets top CRA score

American Banker

The FDIC gave Cadence Bank in Mississippi the highest possible rating on its most recent Community Reinvestment Act evaluation. Cadence was the product of a 2021 merger completed just months after the acquired bank settled a federal lending discrimination case.

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CFPB and DOJ settle fair lending claims involving allegations of redlining, discretionary underwriting and pricing, and overt discrimination

CFPB Monitor

The CFPB and DOJ recently announced a proposed consent order with BancorpSouth Bank to settle charges that the bank’s mortgage lending practices violated the Fair Housing Act and the Equal Credit Opportunity Act. While focused on mortgage lending, the settlement has significant fair lending implications for many types of non-mortgage credit.

Lending 60
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CFPB enters into consent order with small-dollar lender to settle alleged TILA and UDAAP violations

CFPB Monitor

against Main Street, which represents “the total title finance charges made directly or indirectly by Affected Title Consumers to [Main Street] that exceed the amount of finance charges stated in the required TILA disclosure box in the Mississippi auto-title pledge agreements those consumers received.”

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CFPB and All American Check Cashing agree to settlement conference

CFPB Monitor

The CFPB and All American Check Cashing have filed a status report with the Mississippi federal district court indicating that they have agreed to a settlement conference before a magistrate judge.

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CFPB announces advisory committee members

CFPB Monitor

Nikitra Bailey, EVP, Center for Responsible Lending (Durham, NC). Bruce Ocko, Senior VP Director of Mortgage & Consumer Lending, Bangor Savings Bank (Bangor, ME). Lee Chair, Mississippi State University (Mississippi State, MS). Nadine Cohen, Managing Attorney, Greater Boston Legal Services (Boston, MA).

DC 78
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This week’s podcast: The CFPB’s approach to regulating payday lending: a discussion with Todd J. Zywicki, Professor of Law at George Mason University Antonin Scalia Law School, and Thomas Miller, Professor of Finance at Mississippi State University

CFPB Monitor

Zywicki and Miller have co-authored a soon-to-be published study, “The Effects on Consumers from Two State-Level Regulations of the Payday Loan Market,” in which they analyzed 15.6 million storefront payday loans made to 1.8