CFPB Fines Draper & Kramer $1.5M, Bans Mortgage Lending

The Consumer Financial Protection Bureau (CFPB) has filed a complaint and secured a consent order against Draper & Kramer Mortgage Corporation, resulting in a $1.5 million civil money penalty and a 5-year ban on residential mortgage lending. The violations cited include the Equal Credit Opportunity Act (ECOA) and the Consumer Financial Protection Act (CFPA). Draper & Kramer has paid the penalty and ceased originating loans, with the consent order entered on January 24, 2025, and the penalty paid shortly thereafter.

On May 15, 2025, the CFPB issued a no-action letter, effectively ceasing its monitoring and enforcement of the consent order. This decision was based on the company's cessation of operations, the Bureau's strategic focus on fair lending matters with direct evidence of overt racial discrimination, and a broader prioritization of resources towards servicemembers, veterans, and small businesses. This means regulated entities should note the CFPB's shift in enforcement priorities and the specific grounds for ceasing oversight in this case.