First Merchants Corporation (FRME) announced a settlement agreement with the United States Department of Justice to address issues raised relative to the Equal Credit Opportunity Act
and the Fair Housing Act.
They sued the loan servicer, Shellpoint, under the Equal Credit Opportunity Act
, 15 U.S.C.
Fergus weaves a braided narrative beginning with the passage of the Equal Credit Opportunity Act
, Home Mortgage Disclosure Act, and Community Reinvestment Act in the mid1970s.
(4) In an effort to counteract the discriminatory practices involved in credit lending, Congress enacted the Equal Credit Opportunity Act
("ECOA") in 1974.
"HMDA data provide information on mortgage lending patterns and trends that allow regulators, lenders, researchers, and the public to better understand and address redlining concerns by identifying possible discriminatory lending patterns, and monitoring compliance with and enforcement of statutes, like the Community Reinvestment Act; and Federal antidiscrimination laws, like the Equal Credit Opportunity Act
and the Fair Housing Act," she said.
That statute and the Equal Credit Opportunity Act
set forth a number of very specific obligations, which require proactive processes to avoid costly missteps (and opportunities for class action claims).
And at the end of the summer, the Consumer Finance Protection Bureau-an agency Obama helped to create--declared that the Equal Credit Opportunity Act
prohibits discrimination on the basis of sexual orientation and gender identity.
The government alleged the bank violated the Fair Housing Act and the Equal Credit Opportunity Act
(ECOA), and unlawfully discriminated against African Americans and other residents of predominantly minority communities in the Memphis market, as well as in parts of Mississippi and Arkansas.
"Community banks are fully committed to fair lending and strongly oppose discrimination prohibited under laws such as the Fair Housing Act and Equal Credit Opportunity Act
. Community banks have strong compliance systems to monitor the issuing of credit and distribution of credit to protected classes.
For example, the Dodd-Frank Act transferred rulemaking authority under both the Equal Credit Opportunity Act
(ECOA) and the Home Mortgage Disclosure Act to the CFPB.
The US Department of Justice said that the accord resolves allegations that the unit violated the federal Fair Housing Act and Equal Credit Opportunity Act
by discriminating on the basis of disability and receipt of public assistance.