CFPB and DOJ lead a multi-prong attack on Trident Mortgage’s alleged redlining

by Keith Schostag, NAFCU Compliance Blog

On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) announced the filing of a complaint and consent order against Trident Mortgage Company LP (Trident) in the U.S. District Court for the Eastern District of Pennsylvania for violations of the Fair Housing Act, Equal Credit Opportunity Act, Regulation B, and the Consumer Financial Protection Act of 2010. According to the complaint, “[f]rom 2015 through 2019, Trident originated mortgage loans secured by one- to four-family properties. Most of its mortgage volume during this time consisted of home purchase transactions, and it made some refinance mortgage loans.”

Alleged Conduct

In its complaint, the CFPB alleges that Trident engaged in redlining, including the following conduct:

  • Concentrated office locations in majority white neighborhoods which discouraged residents of majority-non-white neighborhoods from applying for loans;

 

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