NYDFS TAKES ADDITIONAL ENFORCEMENT ACTION AGAINST REDLINING

According to its second report on fair lending violations, NYDFS took action against two mortgage lenders, although it did not make any findings of violations: “After taking the testimony of Premium Mortgage and 1st Priority executives, as well as a number of licensed mortgage loan originators at Premium Mortgage, and reviewing documents provided by the companies, the Department made no findings of any violation of fair lending laws, and the Department did not find any evidence of intentional discrimination. However, the Department concluded that 1st Priority’s and Premium’s poor performance in lending to people of color and in majority-minority neighborhoods resulted, in part, from weaknesses in their fair lending and compliance programs.”

The DFS report may be found here:  https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202212081