CFPB wants to return penalty to Townstone Financial

Yesterday, in its first press release since February 3, 2025, the CFPB reported that its Acting Director, Russ Vought, is seeking to vacate the settlement the CFPB extracted from Townstone Financial. According to its press release, the CFPB used a “redlining screen” based on an arbitrary number of mortgages to destroy a small Midwest firm with about ten employees and a radio program called Townstone Financial.

After a thorough review, the CFPB is seeking to make Townstone whole by returning the six-figure penalty they were forced to pay.

See also:

• CFPB sues non-bank mortgage creditor for redlining, July 16, 2020
• CFPB proposes settlement with Townstone Financial, November 4, 2024