U.S. Attorney Markenzy Lapointe | U.S. Department of Justice
The Justice Department has announced a settlement with The Mortgage Firm, Inc., a non-depository mortgage company. The firm agreed to pay $1.75 million to address allegations of discriminatory lending practices in the Miami-Fort Lauderdale-West Palm Beach area. This marks the third such settlement involving a non-depository institution in Miami.
Redlining is an illegal practice where lenders avoid offering credit services to individuals based on the racial or ethnic makeup of their neighborhoods. U.S. Attorney Markenzy Lapointe for the Southern District of Florida emphasized that “the unlawful practice of lending discrimination is not merely a thing of the past, but persists in this country.” He reiterated the commitment to ensuring equal access to homeownership opportunities.
Assistant Attorney General Kristen Clarke highlighted that "non-depository institutions, including mortgage companies, are now originating a higher share of loans." She stated that The Mortgage Firm's actions "denied predominantly Black and Hispanic neighborhoods in the greater Miami area access to credit" and violated federal laws against redlining.
The complaint alleges that The Mortgage Firm violated both the Fair Housing Act and Equal Credit Opportunity Act by not providing equal mortgage lending services to Black and Hispanic communities. It further claims that their offices were located in predominantly white areas, with insufficient marketing efforts directed at minority neighborhoods.
Pending court approval, the proposed consent order mandates several actions from The Mortgage Firm. These include conducting community credit needs assessments, offering $1.75 million for loan subsidies, assessing fair lending programs, enhancing training and staffing for fair lending practices, expanding outreach efforts, and fostering community connections through events and partnerships.
This investigation was initiated following a referral from the Consumer Financial Protection Bureau. It represents part of the Justice Department’s broader Combating Redlining Initiative, which has secured over $153 million for affected communities nationwide.
Further details about this case and other fair lending enforcement activities can be found on the Justice Department's website. Reports of lending discrimination can be submitted via their tip line or online platform.
