The Consumer Financial Protection Bureau, under Acting Director Russ Vought, is asking a court to vacate its prior settlement with Townstone Financial and to return the monetary penalty paid, effectively ending the case following an internal review. The Bureau described the original matter as stemming from a statistical “redlining screen” that initially flagged 22,000 companies and later narrowed to a small set of firms, with Townstone targeted despite having fewer than 10 employees. It said the case relied on alleged racial disparities in mortgage application and origination statistics, including an agency-defined “shortfall” of 31 applications from “majority-minority” areas out of 876 total applications over a three-year period, and that investigators also reviewed Townstone’s radio show and podcasts using audio-mining software, identifying 16 minutes out of nearly 79 hours of content as potentially inappropriate. The filing seeks a court order refunding the penalty and dismissing the case.
Consumer Financial Protection Bureau 2025-03-26
Consumer Financial Protection Bureau seeks to vacate Townstone Financial settlement and refund a six-figure penalty
The Consumer Financial Protection Bureau, led by Acting Director Russ Vought, is asking a court to vacate its settlement with Townstone Financial and refund the penalty, closing the case after an internal review. The original case, based on a "redlining screen," flagged Townstone for alleged racial disparities in mortgage statistics and radio show content. The Bureau's filing seeks to dismiss the case and return the penalty paid.