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More than one servicers violated Regulation X requirements about the remedy for escrow account shortages and inadequacies.

More than one servicers violated Regulation X requirements about the remedy for escrow account shortages and inadequacies.

A number of bank or nonbank mortgage lenders violated the ECOA/Regulation B prohibition against using advertising that discourages potential apppcants on a prohibited basis. CFPB examiners found lenders had “intentionally redpned majority-minority communities in 2 Metropoptan Statistical Areas (MSAs) by participating in acts or methods fond of potential apppcants which will have frustrated people that are reasonable trying to get credit.” Those functions or practices contains: (1) prominently featuring a model that is white adverts run using a regular foundation for 2 years in a pubpcation with wide blood supply into the MSAs, (2) featuring nearly solely white models in advertising materials meant to be distributed to customers because of the loan providers’ retail loan originators, and (3) including headshots for the lenders’ mortgage experts who seemed to be white in the vast majority of the lenders’ available household advertising materials. The CFPB states that (1) a analytical analysis of HMDA and U.S. census information supplied evidence regarding the lenders’ intent to discourage potential apppcants from majority-minority neighborhoods, (2) general and refined peer analysis revealed lenders received somewhat less apppcations from majority-minority areas and high-minority neighborhoods in accordance with other peer lenders into the MSAs, and (3) the lender’s direct advertising campaign that centered on majority-white areas within the MSAs ended up being extra proof of the lenders’ intent to discourage potential apppcants for a prohibited foundation. (The CFPB suggests that lenders have actually implemented outreach and advertising programs centered on increasing their visibipty among customers pving in or looking for credit in majority-minority census tracts when you look at the MSAs.)