DOJ's New Redlining Initiative: What to Expect

Redlining has become a major priority of the federal regulatory agencies, and scrutiny will continue to be applied to both banks and non-banks with the announcement of a major new effort targeting mortgage redlining practices called the "Combatting Redlining Initiative" by the U.S. Department of Justice (DOJ). The agency has said that this will be the “most aggressive and coordinated enforcement effort” ever undertaken to combat redlining, and investigations are currently underway. The initiative will be led by the DOJ’s Civil Rights Division in partnership with U.S. Attorney’s Offices and will leverage existing relationships with the Consumer Financial Protection Bureau (CFPB) and prudential banking regulators. Significantly, CFPB Director Chopra’s remarks at a recent press conference indicate the Bureau also intends to begin scrutinizing digital redlining practices arising from the use of automated underwriting models.

Please join us for a discussion about this renewed emphasis on redlining, including:

• How to detect and correct potential redlining issues before they become areas of regulatory exposure,
• What to expect in mortgage-related examinations,
• Investigations and enforcement actions, and
• Implications for digital redlining enforcement from the CFPB.