On January 17th, the CFPB took action against Draper & Kramer Mortgage Corporation for discriminatory lending practices. Specifically, the CFPB alleged that in their Chicago and Boston markets, Draper & Kramer located all of their offices in majority-White neighborhoods which discouraged homebuyers in majority-Black and Hispanic neighborhoods from seeking mortgage loans with them. Additionally, it’s alleged that Draper & Kramer concentrated their marketing efforts only to these majority-White areas and avoided marketing to majority-Black and Hispanic areas.
Draper & Kramer is based in Illinois but originates loans across the United States. The CFPB found that there was a disproportionate number of loan application and originations from majority-Black and Hispanic areas in Chicago and Boston as compared to other lenders.
The CFPB is seeking to ban Draper & Kramer from mortgage lending for five years and pay a $1.5 million civil money penalty.
This serves as a good reminder to make sure your fair lending practices are on the up and up. If you need training on fair lending, we have several webinars available OnDemand that are targeted to specific audiences.
Published
2025/02/26
