Compliance News

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October 11, 2018

Connecticut Bank Sued for Alleged Discriminatory Mortgage Lending

Ballard Sparh, LLP--Alan S. Kaplinsky

Last week, the Connecticut Fair Housing Center, Inc. filed a complaintagainst Liberty Bank in Connecticut federal district court alleging that the Bank engaged in discriminatory mortgage lending in violation of the federal Fair Housing Act. The complaint describes the Bank as “the eighth-largest conventional home purchase lender and eleventh-largest refinancer in Connecticut.”

The complaint alleges that the Bank violated the FHA by engaging in the following conduct:

The complaint serves as a reminder that while fair lending enforcement may appear to no longer be emphasized by the CFPB under Acting Director Mulvaney, lenders should keep fair lending issues front of mind. In addition to private plaintiffs, state regulators continue to pursue initiatives to enforce fair lending laws.

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