Fairway Independent Mortgage Corp. agreed to pay nearly $10 million to settle redlining claims.
The Justice Department and the Consumer Financial Protection Bureau also hit the Madison, Wis., mortgage lender with a consent order alleging that the lender discriminated against applicants in Black neighborhoods in Birmingham, Ala.
Fairway operates in Birmingham as MortgageBanc.
“This case is a reminder that redlining is not a relic of the past, and the Justice Department will continue to work urgently to combat lending discrimination wherever it arises and to secure relief for the communities harmed by it,” Attorney General Merrick Garland said in a press release.
The complaint claimed that Fairway concentrated its retail lending operations in majority-white areas and spent less than 3% of its direct mail advertising in majority-Black areas.