Dana Lumsden was recently quoted in American Banker in an article which examines the Department of Justice’s and the Consumer Financial Protection Bureau’s increased scrutiny of redlining, a discriminatory practice in which lenders deny or charge more for services provided within specific geographic areas. Both agencies cite the fallout from the financial crisis as the reason for the increase in redlining.
In the article, Lumsden says the CFPB’s proposed changes to the Home Mortgage Disclosures Act (HMDA) will provide more clarity on the agency’s fair lending enforcement approach. Lumsden also forecasts heightened examination of alleged disparities in mortgage servicing in the wake of the proposed HMDA changes, adding new dimensions to the redlining concerns.
Read the complete article, “CFPB, DOJ Stepping Up Interest in Redlining Cases,” which first appeared in American Banker on May 11, 2015 (subscription required).