CFPB Appeals Townstone Decision to the 7th Circuit

On April 3, 2023, the CFPB filed notice of its appeal of a district court’s decision to dismiss its complaint for violations of ECOA against mortgage lender Townstone Financial, Inc (Townstone). 

The CFPB alleged Townstone discouraged African-Americans from applying for credit with the lender based on the lender’s sponsorship of and participation in a talk radio program.  In dismissing the complaint, the district court found that ECOA’s statutory language unambiguously applies only to “applicants,” not “prospective applicants,” contrary to the CFPB’s regulation implementing ECOA.

WBK previously covered the CFPB’s filing of the complaint and the district court’s decision.