U.S. Department
of Justice
Fair Lending Enforcement
The Civil Rights Division’s Housing and Civil Enforcement Section enforces laws to protect equal access to credit. These laws include the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA). ECOA prohibits discrimination in any part of a credit transaction because of race, color, religion, national origin, sex, being unmarried, age, having income from public assistance, or because someone has exercised their rights under fair lending laws. The FHA prohibits discrimination in home loans or credit because of race, color, religion, sex, national origin, disability, or having a family with children under 18. The Division can enforce these laws on its own or with a referral from another agency.
Through enforcement of these laws, the Division has brought a wide range of matters, including cases to address discrimination in loan underwriting, pricing, and terms of credit. In October 2021, the Department of Justice launched the Combating Redlining Initiative (CRI). Redlining is the practice of lenders discouraging loan applications, denying equal access to home loans and other credit services, or avoiding providing home loans or other credit services to neighborhoods because of the race, color, or national origin of the residents of those neighborhoods. Under the CRI, the Department partners with U.S. Attorney’s Offices and coordinates with financial regulators—including the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of the Currency—to ensure lenders are held accountable for discriminatory lending practices. The Department has announced 16 CRI resolutions that provide over $153 million for redlined communities in New Jersey, Rhode Island, Houston, Newark, Los Angeles, Columbus, Philadelphia, Tulsa, Jacksonville, Miami, Memphis, Charlotte, Winston-Salem, and Birmingham. Over $135 million is dedicated to subsidizing mortgage loans and making financial assistance available to borrowers to help them realize the dream of home ownership in these communities.