A row of framed houses under construction in a file photo. The Consumer Finance Protection Board and the U.S. Department of Justice reached a settlement with a Wisconsin-based mortage company over allegations of redlining in Birmingham. The company said that it feels that “justice did not prevail” in the situation. (Getty Images)
A mortgage company has agreed to pay civil penalties of almost $9 million to settle a lawsuit filed by the Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Justice (DOJ) alleging that the company had discriminated against people living in the predominantly Black neighborhoods in Birmingham.
The two agencies alleged that Fairway Independent Mortgage Insurance Corporation, based in Madison, Wisconsin, had engaged in redlining by failing to provide credit services, especially with respect to housing, for individuals living in communities of color.
“The CFPB and DOJ are holding Fairway accountable for redlining Black neighborhoods,” said CFPB Director Rohit Chopra in a statement. “Fairway’s unlawful redlining discouraged families from seeking loans for homes in Birmingham’s Black neighborhoods.”