Category Archives: Lending Discrimination

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New Risks for Indirect Lenders

Last month the Consumer Financial Protection Bureau announced that it will start holding banks accountable for the discriminatory actions of indirect auto lenders. The issue arises when a consumer goes to purchase a car and applies for financing right at the dealership. That dealer then takes the loan application and submits it to a bank which either … Continue reading this entry

7th Circuit Finds ECOA Provides Relief Against Loan Modification Proposals

In Estate of Davis v. Wells Fargo Bank, 2011 WL 93030 (7th Cir. Jan. 12, 2011), the plaintiff asserted claims arising from her 1999 mortgage loan refinancing which, in a prior action against the original defunct lender, was determined to have been fraudulent. In 2002, the plaintiff defaulted on her loan and Wells Fargo Bank, … Continue reading this entry

Third Circuit Furthers Split Regarding Use of McDonnell Douglas Test in Lender Discrimination Suits

In Anderson v. Wachovia Mortgage Corporation, the Court of Appeals for the Third Circuit furthered a split between the Circuits by holding that the direct evidence test introduced by Price Waterhouse v. Hopkins, and the burden-shifting framework established by McDonnell Douglas Corp. v. Green, may be used to investigate claims of discriminatory lending under § … Continue reading this entry