Fairway Mortgage Fined $8.9M for Redlining in Birmingham

The Justice Department and CFPB penalized Fairway Independent Mortgage for discriminatory practices in Black neighborhoods.

Fairway Independent Mortgage Corporation will pay a $1.9 million penalty and provide $7 million in loan subsidies as part of the settlement.
The enforcement action is part of the Justice Department's Combating Redlining Initiative, which has secured over $150 million in relief nationwide.
Fairway allegedly focused its marketing efforts in majority-white areas and failed to serve majority-Black neighborhoods in Birmingham from 2015 to 2022.
The settlement requires Fairway to open a new office in a majority-Black neighborhood and invest in community outreach and financial education.
This case marks the Justice Department's 15th redlining settlement in three years, emphasizing their commitment to addressing lending discrimination.