CHICAGO (WBBM NEWSRADIO) — A settlement has been reached in a long-running lawsuit with a Chicago mortgage lender over alleged racial discrimination.
The U.S. Consumer Financial Protection Bureau (CFPB) announced that Chicago-based Townstone Financial will pay a $105,000 fine for allegedly discouraging loan applicants based on their race or where they wanted to live.
The watchdog agency accused the company of calling predominantly Black neighborhoods “crime-ridden” and “the jungle” in marketing programming that aired on the radio and on podcasts in 2020.
From 2014 – 2017, the CFPB said only 2% of Townstone’s loan applications were for homes in mostly African American neighborhoods.
In a statement on its website, the legal team representing Townstone said the company neither admitted nor denied the allegations.
Listen to WBBM Newsradio now on Audacy!
Sign up and follow WBBM Newsradio
Facebook | Twitter | Instagram | TikTok