CFPB Sues Chicago Lender For Redlining

The Consumer Financial Protection Bureau filed a lawsuit against a Chicago-based mortgage lender for allegedly discouraging Black applicants from applying for loans while engaging in redlining by discouraging borrowers for investing in predominantly African-American neighborhoods. The CFPB alleges Townstone “drew almost no applications for properties in African-American neighborhoods” in the Chicago metropolitan area between 2014 and 2017, while processing few applications from potential Black borrowers in the Chicago area. Specifically, the complaint – filed in federal court in the Northern District of Illinois – alleges: Townstone engaged in acts or practices, including making statements during its weekly radio shows and podcasts through which it marketed its services, that illegally discouraged prospective African-American applicants from applying to Townstone for mortgage loans;Townstone…

Mortgage Trade Group CEO Sends Lewd, Misogynistic Texts To Rival

Warning: This story and the embedded videos include crude and misogynistic language. The head of the Association of Independent Mortgage Experts sent a mortgage company executive expletive-filled video messages falsely alleging the man’s wife performed sexual acts on United Wholesale Mortgage President & CEO Mat Ishbia while in college. “Austin, great to see you’re having a great time. Love to meet your wife. It’s amazing that’s the girl who sucked Ishbia’s d*** in college. Way to marry up,” AIME CEO Anthony Casa said in the video directed at Quicken Loans Executive Vice President Austin Niemiec – and apparently distributed to others. In response, Theresa Niemiec – Austin’s wife – filed a lawsuit against Casa, alleging he “published and distributed derogatory, misogynistic and…

Consumer Groups Sue To Disband CFPB “Task Farce”

A group of consumer advocates sued the Consumer Financial Protection Bureau and Director Kathy Kraninger on Tuesday, alleging they created a task force that does not serve the public interest and has secretly conducted its work in violation of federal law. The plaintiffs – including the National Association of Consumer Advocates, U.S. Public Interest Research Group and consumer law Professor Kathleen Engel – allege the task force is “stacked with industry-aligned members, excludes consumer advocates, does not serve a public interest, and has conducted its work behind closed doors.” The lawsuit seeks to prevent the task force from operating. “A group of hand-picked industry lawyers and consultants that meets behind closed doors — with no consumer advocates or disparate points…