The Fair Lending Report of the Consumer Financial Protection Bureau (CFPB) for 2023 is Released

 

The June 2024 Fair Lending Report describes CFPB's fair lending activities in enforcement, guidance and rulemaking, interagency coordination, and outreach and activities for calendar year 2023. It is submitted to Congress. The fair lending activities of the CFPB are summarized here.

Fair Lending Activities

In 2023 the CFPB focused much of its fair lending supervision efforts on: mortgage origination (including redlining, property valuation bias, and HMDA and Regulation C compliance); credit card marketing and the use of alternative data in digital marketing; and on the use of automated systems and models, sometimes marketed as artificial intelligence (AI) and machine learning models, in credit card
originations.

The CFPB’s 2023 mortgage origination work continued to focus on redlining (intentional discrimination against applicants and prospective applicants living or seeking credit in minority neighborhoods, including by discouragement). The CFPB’s mortgage work also included assessing potential discrimination in mortgage underwriting and pricing processes, including assessing whether there were disparities in application, underwriting, and pricing processes, and whether there were weaknesses in fair lending-related compliance management systems. The CFPB’s mortgage origination work also included reviewing residential property appraisal service providers to identify risks that may arise due to potential discrimination or bias as well as HMDA data integrity and validation reviews.

The CFPB continued to assess whether lenders complied with the adverse action notice requirements of the Equal Credit Opportunity Act (ECOA) and Regulation B and evaluated whether lenders maintain policies and procedures that unlawfully exclude property on the basis of geography in underwriting decisions, unlawfully exclude certain types of income, and treat criminal history in an unlawful manner. 

Fair Lending Enforcement

In fair lending enforcement, the CFPB:

(1) Did two ECOA-related public enforcement actions, relating to discrimination on the basis of race and national origin, one against Citibank N.A. (Citibank) and the other against Colony Ridge Development, LLC, and Colony Ridge BV, LLC, and affiliate mortgage company Colony Ridge Land, LLC (collectively, the Colony Ridge defendants).

(2) Took public enforcement actions against two repeat offenders for reporting false, erroneous, or incorrect HMDA data: Freedom Mortgage Corporation (Freedom Mortgage) and Bank of America, N.A.

(3) On October 10, 2023, the CFPB filed a lawsuit against Freedom Mortgage, a residential

mortgage loan originator and servicer, alleging that it submitted legally-required mortgage loan

data that were riddled with errors.

(4) On November 28, 2023, the CFPB issued an order against Bank of America for routinely

submitting falsified HMDA data.5 The CFPB found that between 2016 and late 2020, hundreds

of Bank of America’s loan officers failed to ask applicants for their race, ethnicity, and sex, as

required by law, and instead falsely recorded that the applicants chose not to provide this

information.

(5) In 2023, the CFPB issued several fair lending-related Matters Requiring Attention and entered
Memoranda of Understanding directing entities to take corrective actions that the CFPB will
monitor through follow-up supervisory actions. In these communications, the CFPB directed
mortgage lenders to correct violations relating to redlining, including by institutions providing
consumer remediation designed to spur lending in redlined areas.

Read the full June 2024 CFPB report.

HUD Approves Settlement with California Housing Providers Resolving Claim of Disability Discrimination

The HUD-brokered Conciliation Agreement between Burbank Housing Management Corporation, Burbank Housing Development Corporation, BHDC Parkwood Apartments, LLC, Oak Ridge Apartments Associates LP, and James Perez, requires the respondents to pay $41,500 in compensation to the complainant. The Agreement resolves allegations that the respondents were in noncompliance with Section 504 of the Rehabilitation Act of 1973 and also violated the Fair Housing Act by discriminating against tenants with disabilities. Read the Agreement here.

Section 504 of the Rehabilitation Act of 1973 (Section 504) forbids the exclusion or discrimination of qualified individuals based on disability in any program receiving federal financial assistance, including those from HUD.

The matter began with a complaint alleging that the Sonoma County, California, based housing providers interfered with the rights of tenants with disabilities to obtain reasonable accommodations, and that the respondents, who are recipients of HUD and United States Department of Agriculture (USDA) funding, were in noncompliance with Section 504. The Respondents denied the allegations in the Complaint and agreed to settle the matter. The Conciliation Agreement does not constitute an admission of guilt by the Respondents and no determination has been issued by HUD in this matter.

Under the terms of the Agreement, the housing providers will pay $41,500 to the complainant. The housing providers will also ensure their reasonable accommodation policies are in compliance with the Fair Housing Act and Section 504 and that they process reasonable accommodation requests in a timely manner. HUD and USDA will monitor the Agreement.

People who believe they have experienced discrimination may file a complaint by contacting HUD's Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 877-8339 (Relay) or at hud.gov/fairhousing.

Read the July 2, 2024 HUD release.

Detroit Redlining Conference on September 24th

 

The Detroit Reinvestment Coalition, Community Development Advocates of Detroit (CDAD, and the National Community Reinvestment Coalition (NCRC) will convene a Just Economy: Detroit on September 24th. The one-day summit will center a question with no simple answer: What will it take to make a Just Economy a local reality in Detroit? The legacy of redlining continues to reverberate throughout the city through uneven investment in community development, inequitable impacts of climate change and a shortage of housing within reach of the average Detroiter. Join local and national leaders to explore opportunities to change the flow of capital in the city.

Register Now

While this event is focused on the Detroit metro area, it may still be beneficial for Marylanders to attend. For additional information on Just Economy: Detroit, visit here. Read the July 9, 2024 NCRC notice of Just Economy: Detroit.

PRRAC Advocates Fairer Screening Rules for HUD-Assisted Housing

On June 10, 2024, the Poverty & Race Research Action Council (PRRAC) submitted comments in support of HUD’s proposed rule to eliminate discriminatory uses of criminal records in screening tenants for admission to HUD-funded housing (89 Fed. Reg. 25332). PRRAC is a civil rights policy organization dedicated to the cause of fair housing, and the urgent need to address the continuing segregation of many low-income families of color in high poverty, low opportunity neighborhoods, a condition that is perpetuated by housing, land use, transportation, and education policies at every level of government.

PRRAC's comments included strong support for the elimination of the long-standing (and illegal) practice of re-screening voucher tenants who move from one public housing authority's "area of operation" to another PHA’s town. PRRAC also stressed the relationship of government-sponsored segregation and disproportionate policing and arrests in predominantly Black and Latino communities as a relevant fair housing consideration in HUD’s reassessment of the use of criminal records. 

A few weeks after HUD issued the proposed rule, HUD's Office of Fair Housing and Equal Opportunity also issued helpful general guidance on fair housing impacts of some common, but often discriminatory, tenant screening practices.

The PRRAC also recently released an update of its "State, Local, and Federal Laws Barring Source-of-Income Discrimination (originally published as Appendix B to Expanding Choice: Practical Strategies for Building a Successful Housing Mobility Program, 2013), June 2024. According to the Center for Policy Alternatives’ calculations, at the time the original report was released, source of income discrimination laws protected 34% of voucher holders in the nation. With the addition of seven states since December, 2018 (New York, California, Colorado, Rhode Island, Maryland, Virginia, and Illinois) and a number of new municipalities, the PRRAC now estimates that over 57% of voucher holders are now covered.

Read the PRRAC Source of Income Laws Report

Maryland Commission Commemorates 60th Anniversary of Civil Rights Act

 

PRESS RELEASE: Maryland Commission on Civil Rights Commemorates the 60th Anniversary of the Passage of Civil Rights Act.   Click on image to view

Victim of Discrimination? Training & Partnerships

HOME      ABOUT MCCR      SERVICES      PUBLICATIONS      EVENTS      PRESS      CONTACT US

Dr. Michael Eric Dyson to Keynote at MD Commission's August 24th Civil Rights Celebration

 

CLICK HERE TO PURCHASE TICKETS  Maryland Commission on Civil Rights is proud to announce its  Biennial Civil Rights & Fair Housing Gala Celebration Keynote Speaker  Michael Eric Dyson "Celebrating Milestones: Pivotal Moments in History" Saturday, August 24, 2024 6:00 pm until 10:00 pm at the The Hall at Live! Casino 7002 Arundel Mills Circle #7777 Hanover, Maryland 21076 The Maryland Commission on Civil Rights is excited to announce that our Biennial Civil Rights & Fair Housing Gala Celebration will be held on August 24, 2024, from 6:00 pm to 10:00 pm at the Maryland Live! Hotel Ballroom in Hanover, Maryland. This year's theme is “Celebrating Milestones: Pivotal Moments in History.” In recent years, state and local organizations have achieved crucial milestones through their diversity in leadership. The values of cultural diversity and inclusiveness involve respect for and acceptance of different philosophies and values. By incorporating different cultures, we can inspire innovations and excellence in our lives, workplaces, communities, and the world. We look forward to seeing everyone there! Ticket Prices & Sponsorship Opportunities  Victim of Discrimination? Training & Partnerships HOME      ABOUT MCCR      SERVICES      PUBLICATIONS      EVENTS      PRESS      CONTACT US

Baltimore Mayor and Police Commissioner Release Statements Condemning Recent Antisemitic Incidents

Mayor Brandon M. Scott and the Baltimore Police Commissioner Richard Worley released the following statements condemning recent antisemitic incidents that occurred in Baltimore City. Mayor Brandon M. Scott said:

“These recent incidents are a horrifying display of hate and simply will not be tolerated in the City of Baltimore. Our Baltimore Jewish community has endured violence, vandalism, and other acts of hate that only seek to intimidate and threaten. To those individuals who are responsible, we only have one message: these antisemitic acts are despicable, and you will be held accountable. We stand with those victims who have endured these acts and with the broader Jewish community who are deeply impacted by the concerning rise in these types of incidents. I have confidence that through BPD’s investigations, the perpetrators will be found and held responsible for their hateful actions.”

Baltimore Police Commissioner Richard Worley said:

“Our Department has witnessed an alarming increase of hate crimes towards our Jewish community, to include antisemitism speech, vandalism, intimidation and even violence. We will not tolerate any form of hate, towards any community or any person in our city. I remain resolute that the BPD will investigate all acts of hate, intimidation or violence towards anyone or any community. Any individual found to be responsible will and must be held accountable, and we will work with our local, state and federal partners to pursue justice to the fullest extent of the law for these incidents.

"We know that hate crimes have a larger impact than just a singular offense, and its impact is felt by not only the victim(s), but also by their loved-ones and community. BPD will continue to support the victims and stand with communities against hate and harassment in all forms, towards anyone.”

Last week, WBFF, a Fox affiliate in Baltimore, reported that “Baltimore’s Jewish community is struggling with a soaring number of antisemitic acts.” As reported on June 29th, hate-filled symbols and offensive graffiti  - yellow and black swastikas alongside profanity - were discovered spray-painted on the pavement of Fordham Court in northwest Baltimore, a street known for its Jewish residents, with the abhorrent messages targeting the heart of the community. The street the spray paint was found on has 10 homes and houses many Jewish residents. The act has been universally condemned by community leaders and advocates, such as Baltimore City Councilmember Issac "Yitzy" Schleifer, who has spoken out on social media against the defacement of his district. Howard Libit, the executive director of the Baltimore Jewish Council, expressed his dismay at the hate crime, lamenting the emotional toll on the families directly affected.

According to the Anti-Defamation League, the number of antisemitic incidents tripled in 2023 compared to the previous year. Most of the incidents involved harassment, vandalism, and assault. The number of incidents climbed following Hamas' October attack on Israel.

Read the June 27, 2024 City of Baltimore release.

Read the June 29, 2024 Hoodline Baltimore article.

Read the June 27, 2024 WBAL-TV article.