On September 29, 2022, the U.S. Department of Justice (DOJ) announced that it reached a settlement with a Memphis-based bank to resolve alleged violations of the Fair Housing Act (FHA), 42 U.S.C. §§ 3601–3619, and Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691–1691f, and its implementing Regulation B, 12 C.F.R. § 1002.1 et seq. The complaint alleged that the bank discriminated against borrowers on the basis of race, sex, and national origin in discretionary pricing components of its residential mortgage loans.
The consent order, if entered by the United States District Court for the Western District of Tennessee, will require the bank to establish a $1.3 million settlement fund to compensate affected borrowers. The bank will also pay a $50,000 civil money penalty and engage in compliance monitoring. In reaching this settlement, the bank denied liability and any and all wrongdoing relating to its pricing of residential mortgage loans.
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