The Justice Department has announced a settlement with The Mortgage Firm, Inc., a non-depository mortgage company based in Altamonte Springs, Florida. The company will pay $1.75 million to address allegations of redlining in predominantly Black and Hispanic neighborhoods within the Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area.
Redlining is an illegal practice where lenders avoid providing credit services to certain communities based on race or national origin. U.S. Attorney Markenzy Lapointe for the Southern District of Florida emphasized the ongoing commitment to civil rights, stating, "Our efforts to protect everyone’s civil rights is never ending." He added that lending discrimination continues in the region and affirmed the office's dedication to ensuring equal access to homeownership.
Assistant Attorney General Kristen Clarke highlighted the increasing role of non-depository institutions like mortgage companies in originating loans. She noted that The Mortgage Firm's actions violated federal laws by denying credit access and exacerbating racial wealth disparities. Clarke stated, "This settlement will provide impacted communities in Miami with expanded access to homeownership."
The complaint alleges that The Mortgage Firm failed to provide equal mortgage lending services and discouraged credit seekers from majority-Black and Hispanic neighborhoods. The company's offices were located predominantly in white areas, with insufficient marketing efforts directed at minority communities.
Pending court approval, the proposed consent order requires several actions from The Mortgage Firm:
- Conducting a Community Credit Needs Assessment.
- Allocating $1.75 million for a loan subsidy program.
- Assessing its fair lending program.
- Enhancing fair lending training and staffing.
- Expanding outreach efforts by maintaining an office in a majority-minority neighborhood.
- Building community connections through events and partnerships.
The investigation was initiated following a referral from the Consumer Financial Protection Bureau. This marks the 16th redlining settlement under the Combating Redlining Initiative by the Justice Department, which has secured over $153 million for affected communities nationwide.
For more information on this case or to report lending discrimination, visit www.justice.gov/fairhousing or call 1-833-591-0291.