Information and Alerts

Government Actions

Consumer Financial Protection Bureau, and United States v. Trident Mortgage Company (E.D. Pa.)
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On July 27, 2022, Trident Mortgage Company and the US Department of Justice, the Consumer Financial Protection Bureau (CFPB), and the Attorneys General of Pennsylvania, New Jersey, and Delaware reached a settlement (Consent Order) for potential violations of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA).  According to complaints from these agencies, from 2015 to 2019, the company failed to provide mortgages to qualified families for homes in neighborhoods of color - a practice known as redlining - in the Philadelphia metropolitan area, including neighborhoods in Camden, and Wilmington.

As part of the $20 million settlement, the company will fund a program to promote lending and increase credit opportunities in neighborhoods it previously excluded from its business.  The Consent Order also stipulates that the company must retain an independent, third-party credit-needs-assessment consultant with specialized experience in ensuring nondiscriminatory access to credit; make certain that all covered staff and company officials receive bi-annual training for topics regarding implicit racial bias, including conduct that could constitute redlining; receive training on obligations under ECOA and FHA regulations; fund a consumer financial education program designed to provide information and counseling services about consumer finance to individuals in majority-minority areas in the Philadelphia MSA; and launch a targeted advertising and outreach campaign to generate applications from qualified applicants for mortgage loans secured by properties in those areas. 

Further, the company must also employ a manager of community lending and maintain at least four mortgage loan officers and offices dedicated to serving neighborhoods of color in and around Philadelphia, Camden, and Wilmington. Under the proposed consent order, the company must submit compliance reports and create, after full compliance with the Consent Order, business records containing documents and records necessary to demonstrate full compliance with the provisions of the agreement for at least two years.

The company must also pay a civil money penalty of $4,000,000 to the CFPB, according to the consent order. Separately, the company has also entered into agreements with the Commonwealth of Pennsylvania and the States of New Jersey and Delaware to resolve allegations and will reimburse Pennsylvania and New Jersey for costs that they incurred in conducting their investigations. 

The settlement described above is for settlement purposes only and should not be considered as an admission of guilt or finding of violation of law. The consent order is effective immediately and this action is final.