A Chicago mortgage lender agreed to settle a long-running Consumer Financial Protection Bureau lawsuit months after a federal appeals court ruled that lenders can be held liable for using racist language to deter mortgage applications.
Townstone Financial Inc. will pay $105,000 under the proposed settlement, filed Friday in the US District Court for the Northern District of Illinois. In addition, Townstone will be held liable and potentially in contempt of court if the CFPB finds that the company violates the Equal Credit Opportunity Act, according to the settlement.
Judge Franklin U. Valderrama will have to approve the proposed settlement. ...
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