CFPB, Townstone Ask Court to Vacate Settlement in Redlining Suit

The Consumer Financial Protection Bureau asked a federal judge to vacate a settlement with a Chicago mortgage lender who stood accused of using racist language to deter Black applicants under a lawsuit from the first Trump administration.

The CFPB failed to consider the First Amendment rights of Townstone Financial Inc. and its president, Barry Sturner, when conducting its investigation, the agency and Townstone said in a joint motion filed Wednesday in the US District Court for the Northern District of Illinois.

“CFPB abused its power, used radical ‘equity’ arguments to tag Townstone as racist with zero evidence, and spent years ...