DOJ terminates more redlining consent orders with lenders

The Trump administration is moving swiftly to roll back Biden-era redlining enforcement.

Federal courts in recent weeks have terminated five consent orders with mortgage lenders, which stemmed from redlining probes by the prior administration. The Department of Justice claimed those companies satisfied the terms of their settlements months and years before their expiration, freeing them of fair lending stipulations. 

Among 15 redlining settlements secured by the Biden administration, 10 remain active, with a few having uncertain statuses. The government’s unprecedented attempt to reverse a previously-agreed settlement with Chicago brokerage Townstone Financial was also defeated by a federal judge this past week.

Fair housing advocates are battling the DOJ’s attempts to close two consent…