The U.S. Department of Housing and Urban Development (HUD) announced that it reached a settlement agreement with a regional bank over a disparate treatment fair housing claim. HUD alleged that the bank engaged in racially discriminatory redlining by lending less in majority-minority census tracks than in other neighborhoods. Under the settlement, the bank agreed to invest nearly $200 million in mortgage loans and pay $10 million in reduced interest rate mortgages to qualified borrowers in majority-minority census tracts. The bank also agreed to provide nearly $3 million to affordable home repair grants in minority census tracts; commit $1.4 million to affirmative marketing of loans in minority neighborhoods; and spend $1.35 million on community reinvestment and fair lending education. The bank will additionally open four loan production offices in minority neighborhoods and offer fair housing training to all employees.
Blog Enforcement Watch May 26, 2015