CFPB-DOJ Civil Suit Confronts Redlining in Birmingham

October 16, 2024

CFPB-DOJ Civil Suit Confronts Redlining in Birmingham

WASHINGTON, D.C. - The U.S. Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Justice (DOJ) today filed a civil suit against Fairway Independent Mortgage Corporation alleging widespread redlining in Birmingham, Alabama, as well as a proposed consent order. Bartlett Naylor, financial policy advocate for Public Citizen, released the following statement:

"It's dispiriting that racist lending practices persist in Birmingham, the iconic center of the civil rights movement. One reason for the persistent gap in homeownership rates between White and African American communities is creditors who close their doors to Black applicants. According to the government's lawsuit, Fairway maintained no offices in Black neighborhoods, and less than 4% of its mortgages came from these areas compared to 10% at peer companies.

"Federal law made redlining illegal decades ago, but it requires vigilant regulatory cops to combat infractions. The CFPB and DOJ civil suit against Fairway falls well within the mandate of both agencies to protect consumers and communities that suffer from race-based discrimination. Both agencies should continue this fight until all mortgage lending services follow the law."