CFPB
Draper & Kramer Mortgage Corporation
January 17, 2025
Summary
The CFPB filed a complaint against Draper & Kramer Mortgage Corporation alleging ECOA, Reg B, and CFPA violations based on discriminatory residential mortgage lending practices. The court entered a consent order on January 24, 2025, imposing a $1.5 million civil money penalty, a 5-year residential mortgage lending ban, and injunctive relief. The CFPB later issued a no-action letter ceasing monitoring and enforcement while the company winds down operations.
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Draper & Kramer Mortgage Corporation
On January 17, 2025, the Consumer Financial Protection Bureau filed a complaint against Draper & Kramer Mortgage Corporation, along with a proposed consent order. The Bureau’s complaint alleged violations of the Equal Credit Opportunity Act (ECOA); ECOA’s implementing regulation; and the Consumer Financial Protection Act of 2010 (CFPA).
On January 24, 2025, the court entered the consent order that, among other things, required Draper & Kramer to pay a $1.5 million civil money penalty and enjoined violations of ECOA and the CFPA. Draper & Kramer has since paid that civil penalty and provided required documents to their employees.
The consent order also imposed on Draper & Kramer a 5-year ban on residential mortgage lending. However, in 2024, Draper & Kramer ceased originating residential mortgage loans and has confirmed its commitment to working diligently to wind down its mortgage lending operations in an orderly manner.
On May 15, 2025, the Bureau issued a no-action letter on the following grounds. First, Draper & Kramer has already paid the civil money penalty and has ceased originating residential mortgage loans so expending resources on monitoring the order is unnecessary. Second, pursuant to the President’s “Restoring Equality of Opportunity and Meritocracy” Executive Order, the Bureau is focusing its supervisory and enforcement resources on fair lending matters with direct evidence of overt racial discrimination and identified victims, which were not present in this matter. Finally, the Bureau is focusing its enforcement and supervision resources on pressing threats to consumers, particularly servicemembers and veterans.
Consistent with these priorities, the Bureau will cease monitoring compliance with this order, will not engage in any supervisory activity to assess compliance with the consent order, and will take no steps to enforce the consent order. The Bureau takes this step in the interest of focusing resources on supporting hard-working U.S. taxpayers, servicemembers, veterans, and small businesses.
RELATED DOCUMENTS
PRESS RELEASE
CFPB Takes Action Against Draper & Kramer Mortgage for Discriminatory Mortgage Lending Practices
Page last modified Jun. 2, 2025 @ 01:04 PM EDT
Action Details
Forum
- Civil Action
Court
U.S. District Court for the Northern District of IllinoisDocket number
1:25-cv-00605
Initial filing date
JAN 17, 2025
Products
- • Fair Lending
- • Mortgage Origination
Source: https://www.consumerfinance.gov/enforcement/actions/draper-kramer-mortgage-corporation/
Common questions
- What does "Draper & Kramer Mortgage Corporation" cover?
- The CFPB filed a complaint against Draper & Kramer Mortgage Corporation alleging ECOA, Reg B, and CFPA violations based on discriminatory residential…
- Which agency issued this update?
- This update was issued by CFPB.
- When was it published?
- It was published on January 17, 2025.