The US Department of Justice (DOJ) and Consumer Financial Protection Bureau (CFPB) recently publicized an agreement with Trident Mortgage Company, LP (Trident), to resolve a lawsuit in which DOJ and the CFPB alleged Trident illegally denied mortgage loan services to majority-minority communities in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area (Philadelphia MSA). The lawsuit is the first action against a non-depository mortgage company and the second largest settlement to redress allegations of redlining. Under the announced agreement, Trident will pay a $4 million fine, fund an $18.4 million loan subsidy program, and commit $2 million toward outreach to minority communities. The settlement was hailed as "part of a renewed effort by federal agencies to combat illegal redlining" and "a powerful message to lenders that they will be held accountable." Continue reading >