The owner of an independent mortgage company in Chicago, which The Title Report reported Sunday was under investigation by the Consumer Financial Protection Bureau (CFPB), has confirmed his company’s role in the investigation.
Townstone Financial CEO Barry Sturner told The Title Report that his company had received a civil investigative demand (CID) from the CFPB in the summer of 2017. The CID concerned potential violations of the Equal Credit Opportunity Act, involving redlining, because of the radio advertising practices of the company and the company’s radio show.
Townstone Financial has done advertising on a number of different radio stations in the Chicago market, including news talk stations AM-720 and AM-890 and sports talk station AM-670. At issue in the CFPB’s investigation, however, are Townstone’s advertising on news talk station AM-560 and the company’s own podcast, which is similar to the radio show.
After news of the investigation broke Sunday night following The Title Report’s story, Sturner took to Twitter to state his case publicly, asking a Wall Street Journal reporter for help publicizing his story.
“I told a story about how a Chicago policewoman was kicked and beaten in Chicago on public radio and now CFPB says what I stated broke fair lending law,” Sturner tweeted through the Townstone Financial account. “Asking for 1 million dollars. I have three employees. Please help.”
Referencing another publication’s details of the investigation, Sturner added, “We are the 3 person company, 20 years in biz, not one complaint and they are filing.”
Sturner mentioned the allegations as early as May, when he tweeted at President Donald Trump through the Townstone account.
“We discussed the crime on the south side of Chicago on our public radio which you too have discussed, and CFPB said that statement was also against fair lending act laws,” he wrote. “Need your help, please! 100% factual. Cant state facts any longer in America unless NY Times agrees?”
He followed with another tweet which said, “I told a story about how a Chicago policewoman was kicked and beaten in Chicago on public radio and now CFPB says what I stated broke fair lending law. Asking for 1 million dollars. I have 3 employees. Please help.”
The initial story by The Title Report stated that if the CFPB filed expected allegations, sources said the lawsuit could effectively end the industry’s ability to market and advertise their services through a variety of channels, including trade publications, online media, newspapers, radio stations and TV for fear of regulators charging companies with ECOA violations based on the predominant demographics or political leanings of each media outlet.
Sources said the expected lawsuit would essentially impose a new Equal Time Rule for the financial services industry’s marketing in certain media outlets. The Equal Time Rule is a portion of the Communications Act of 1934 which provides that broadcast licensees must permit equal use of broadcast facilities to all legally qualified candidates for political office and that the broadcast licensee may not censor the candidates’ messages, and the action would establish similar practices as a determination for discrimination in advertising under ECOA.