Judge Rejects CFPB’s Bid to Vacate Townstone Settlement

Judge rejects CFPB’s bid to vacate Townstone settlement

If the redlining order against Townstone were to be dismissed, it “would erode public confidence in the finality of judgments,” a judge wrote, calling the CFPB’s reversal “an act of legal hara-kiri that would make a samurai blush.”

Judge Warns Against ‘Pandora’s Box’ in CFPB Settlement Reversal Attempt - The MortgagePoint

U.S. District Judge Franklin Valderrama has denied an attempt by the CFPB to vacate a previous redlining settlement against Townstone Financial, dismissing claims of bias and protecting the original settlement aimed at penalizing discriminatory mortgage practices.

Court Denies CFPB/Townstone Bid to Undo Consent Order

As previously reported, in March 2025 the CFPB and Townstone Financial (Townstone) filed a joint motion with a U.S. District Court seeking to reverse the November 2024 consent order between the parties that resolved CFPB allegations of redlining on the part of Townstone in violation of the Equal Credit Opportunity Act (ECOA).... Continue Reading

Judge rejects CFPB motion to undo redlining settlement

A Trump-appointed judge refused to dismiss a settlement between the Consumer Financial Protection Bureau and Chicago mortgage lender Townstone over lending practices that an appeals court already said violated the Equal Credit Opportunity Act.

Judge Rejects CFPB's Request to Vacate Redlining Settlement with Townstone Financial

"That is a Pandora's box the court refuses to open," said US District Judge Franklin Valderrama. Continue Reading Judge Rejects CFPB’s Request to Vacate Redlining Settlement with Townstone Financial The post Judge Rejects CFPB’s Request to Vacate Redlining Settlement with Townstone Financial appeared first on Weekly Real Estate News.

Judge blocks CFPB bid to undo Townstone redlining settlement

A federal judge on Thursday blocked an attempt by the Consumer Financial Protection Bureau (CFPB) to reverse a $105,000 settlement with Townstone Financial, a Chicago-based mortgage broker accused of discouraging Black applicants. U.S. District Judge Franklin Valderrama ruled that allowing the CFPB to unwind the deal, finalized last year, “would erode public confidence in the finality of judgments” and open “a Pandora’s box.” He said such a move…