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

CFPB Enforcement Actions

Filed January 24th, 2025

Detected February 7th, 2026

Summary

The CFPB fined Draper & Kramer Mortgage Corporation $1.5 million and banned it from residential mortgage lending for violations of the Equal Credit Opportunity Act. The Bureau has since issued a no-action letter, ceasing monitoring and enforcement of the consent order due to the company ceasing operations and the Bureau's resource prioritization.

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What changed

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.

Source document (simplified)

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.