On July 15, 2020, the Consumer Financial Protection Bureau (CFPB) announced it had filed suit in the United States District Court for the Northern District of Illinois against a Chicago-based nonbank mortgage creditor for violations of the Equal Credit Opportunity Act, 15 U.S.C. § 1691(a) (ECOA), its implementing regulation Regulation B, 12 C.F.R. pt. 1002, and the Consumer Financial Protection Act. ECOA and Regulation B prohibit statements, acts, or practices that, on a prohibited basis, would discourage an applicant or prospective applicant from applying for credit.
The complaint alleges the company received very few applications from African Americans throughout the Chicago area, that the company made statements during radio shows and podcasts discouraging African Americans from applying for mortgage loans with the company, and that the company allegedly engaged in illegal redlining.