Enforcement Action (Draper & Kramer Mortgage Corporation)

On January 17, 2025, the Bureau filed a complaint and proposed consent order to resolve allegations against Draper & Kramer Mortgage Corporation (Draper), a non-depository mortgage lender based in Downers Grove, Illinois. The complaint alleges that, from 2019 to 2021, Draper violated the Equal Credit Opportunity Act and its implementing regulation, Regulation B, by engaging in unlawful discrimination against applicants and prospective applicants, including by redlining majority-Black and Hispanic and high-Black and Hispanic areas in the Chicago-Naperville-Elgin Metropolitan Statistical Area and Boston-Cambridge-Newton Metropolitan Statistical Area; and engaging in acts and practices directed at applicants and prospective applicants that would discourage a reasonable person from making or pursuing an application for credit on the basis of race, color, and national origin. Specifically, Draper located all its offices in majority-white neighborhoods; concentrated its marketing in majority-white neighborhoods and avoided marketing to majority-Black and Hispanic areas; and consequently, generated disproportionately low numbers of mortgage loan applications and mortgage loans from majority-Black and Hispanic neighborhoods in the Chicago and Boston MSAs compared to similarly situated lenders. The proposed consent order, if entered by the court, would require Draper to pay a civil monetary penalty of $1.5 million and force Draper to refrain from acting as a non-depository residential mortgage lender for a period of five years.

RELATED DOCUMENTS

Complaint

Complaint Exhibits

Proposed Consent Order

PRESS RELEASE

CFPB Takes Action Against Draper & Kramer Mortgage for Discriminatory Mortgage Lending Practices