Judge Rejects Trump Administration’s Efforts to Abandon Redlining Settlement with Townstone Financial Inc.
FOR IMMEDIATE RELEASE:
Judge Rejects Trump Administration’s Efforts to Abandon Redlining Settlement with Townstone Financial Inc.
WASHINGTON _ A federal judge has denied an attempt by the new leadership of the Consumer Financial Protection Bureau put in place by President Trump to undo its own redlining settlement with the mortgage company Townstone Financial Inc. In his ruling, the judge agreed with civil rights and consumer protection groups who opposed the CFPB’s motion, writing that reversing the settlement simply because the CFPB had changed political leadership would “erode public confidence in the finality of judgements.”
The CFPB brought suit against Townstone in the first Trump Administration, alleging that Townstone redlined Black communities and discouraged applications from Black applicants in the Chicago area. In 2024, the CFPB and Townstone settled for relief that included Townstone agreeing to comply with civil rights laws and paying a civil fine. Under the Trump Administration, the CFPB moved to reopen the judgment and pay back the fine.
In response, the National Fair Housing Alliance® (NFHA™) led a coalition of civil rights and consumer protection groups, represented by Public Citizen Litigation Group, which filed an amicus brief in March opposing the unprecedented motion by the Trump Administration. NFHA has also joined amicus briefs in other cases opposing motions by the Department of Justice to end redlining consent decrees early.
Sasha Samberg-Champion, NFHA’s Special Counsel for Civil Rights, released the following statement after the judge’s ruling:
“We are gratified that Judge Valderrama rejected the Administration’s efforts to reverse the Townstone settlement and swing the door open for the Administration to undo more key civil rights settlements. This decision should make clear how lawless the Administration’s actions are and embolden others to oppose them.”
A full copy of the judge’s ruling can be found here.
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The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for 200 fair housing and justice-centered organizations throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.