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Press Release
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In April, we told you about the Civil Rights Division’s increased efforts to combat lending discrimination with the establishment of a new Fair Lending Unit, and about strengthened partnerships with other federal agencies to more effectively enforce fair lending laws. In recent months, these efforts have yielded a record number of fair lending enforcement actions. Since the beginning of May, the department has resolved or filed seven fair lending actions that protect individuals from unfair or discriminatory lending practices, more than the department has ever filed in such a short time period. The cases cover a variety of types of discrimination, and aim to remedy discrimination against a number of different communities. Below are some highlights of our recent work. Several of the cases have involved allegations of discrimination based on race or national origin:
Another recent case alleges discrimination against women on maternity leave:
The division has also taken aggressive action to protect our members of the military against unfair lending practices.
The Fair Lending Unit works closely with the banking regulatory agencies, the Federal Trade Commission, and HUD, receiving from them fair lending referrals where the agency believes there is a pattern or practice of discrimination. In 2010, the division received 49 referrals from partner agencies, more than it had received in a single year in at least 20 years. Critics of our increased enforcement efforts believe we must choose between vigorous enforcement of fair lending laws and a strong, sound climate for lending. This is a false choice. The truth is that fair lending enforcement is essential for a well functioning market where borrowers can access credit based on their qualifications and not be denied opportunity because of their race, national origin or gender. In fact, the department’s enforcement efforts support sound lending practices. The department’s fair lending settlement agreements repeatedly refer to the extension of credit to “qualified applicants” only. The department makes clear that no provision in the agreements require banks to make any unsafe or unsound loan. As we recover from our nation’s housing crisis, we all have a shared interest in ensuring that communities are rebuilt in a sustainable way that allows them to flourish not only in the near term, but for generations to come. This can only happen if all qualified homebuyers can access safe, sustainable credit, free from discrimination, on the same basis as their peers as is required by law. The Justice Department will unapologetically continue to ensure they can do so by vigorously enforcing fair lending laws.