The practice of lenders charging more for products or excluding minorities within certain geographic areas has caught the interest of Officials for both the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ). Stern warnings have been issued to lenders who show signs of practicing in such prohibited acts damaging borrowers ability to obtain mortgage loans.
The DOJ has so far opened 25 fair lending investigations by the end of 2014 and 10 of those were done jointly with the CFPB” stated Steven Rosenbaum, the DOJ Chief of the Civil Rights Division of Housing and Civil Enforcement.
“In some cases of redlining, lenders literally drew a red line on a map around neighborhoods to which they did not want to lend, which gave this practice its name 9″redlining”).” Says Sam Gilford, a spokesman for the CFPB.
The CFPB acts in a supervisory capacity to make sure lenders are adhering to correct and ethical lending practices. If lenders are found to have violated principles of lending, they can be fined strict penalties.
Make sure if you are seeking a loan for a mortgage, that you hire the services of a real estate attorney to not only make sure your lenders practices are ethical, but to make sure that you are protected every step of the way.
The experienced real estate attorneys at Jacqueline Salcines, PA aggressively represent you in your mortgage and loan needs.
Call us today to see how we can help you.
Main office 305 | 669 | 5280. Or email the attorney directly: J.Salcines@Salcineslaw.com
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