Tag Archives: redlining

Two Ohio-based banks settle “redlining” allegations

A pair of banks based in Ohio must begin increasing mortgage lending in minority neighborhoods in certain areas of Ohio and Indiana as part of a settlement with theDepartment of Justice, which accused the banks of “redlining.”

The DOJ defines redlining as a “discriminatory practice by banks or other financial institutions of denying or avoiding providing credit services to consumers because of the racial demographics of the neighborhood in which the consumer lives.”

In this case, the DOJ accused Union Savings Bank and Guardian Savings Bank, which are based in Cincinnati and share common ownership and management, of redlining “predominantly African-American” neighborhoods in Cincinnati; Columbus, Ohio; Dayton, Ohio; and Indianapolis.

The complaint alleged that from at least 2010 through 2014, the banks extended credit to the residents of predominantly white neighborhoods to a “significantly greater extent” than they extended credit to majority African-American neighborhoods in the same cities.

Read on.

9 Investigates: Complaint involves homes owned by Bank of America in predominately African-American and Latino neighborhoods

ORLANDO, Fla. – 9 Investigative reporter Nancy Alvarez looked into more than a dozen potentially dangerous eyesore homes in Orlando, at the center of a federal complaint.

The complaint involves homes owned by Bank of America in predominately African-American and Latino neighborhoods.

Neighbors told Eyewitness News one of the homes in the Holden Heights neighborhood is a disaster and not much has been done to fix it since 2012.

“It allows all types of illicit activity — that’s a problem,” said community organizer Thomas Alston.

The city of Orlando is part of a national effort to hold banks accountable for foreclosed properties that fall into disrepair.

Eyewitness News found out many of the federal complaint claims fall predominantly in African-American and Latino neighborhoods.

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BancorpSouth fined $10.6 million for discriminatory lending, redlining

CFPB, DOJ accuse bank of having “explicitly discriminatory denial policy”

BancorpSouth will pay $10.6 million to settle charges against the bank by theDepartment of Justice and the Consumer Financial Protection Bureau, which accused the Mississippi-based bank of redlining and discriminatory lending practices.

According to a joint release from the CFPB and the DOJ, the agencies accused BancorpSouth of a number of discriminatory practices, including illegally redlining in Memphis; denying the mortgage loan applications of certain African-Americans more often than similarly situated non-Hispanic white applicants; charging African-American customers more for certain mortgage loans than non-Hispanic white borrowers with similar loan qualifications; and implementing an “explicitly discriminatory loan denial policy.”

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First Federal Bank of Kansas City reaches $2.8 million settlement for redlining

First Federal Bank of Kansas City agreed to a $2.8 million settlement over charges that the bank excluded minority neighborhoods from its lending service area, a practice commonly known as redlining.

According to the Department of Housing and Urban Development, First Federal Bank of Kansas City allegedly redlined several neighborhoods where the majority of the residents are African-American, thereby limiting residential mortgage lending to persons based upon their race, which is a violation of the Fair Housing Act.

The settlement agreement stems from two complaints filed on Oct. 5, 2015 by two fair housing groups that accused First Federal Bank of Kansas City of redlining.

The groups, the nonprofit organizations Metropolitan St. Louis Equal Housing and Opportunity Council and Legal Aid of Western Missouri, alleged that the bank’s lack of market penetration in African-American communities in the urban core (East Side) of Kansas City, Missouri made residential real estate products less available to people based on race.

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Minorities exploited by Warren Buffett’s mobile-home empire

Third of a series

GALLUP, N.M. — After a few years living with her sister, Rose Mary Zunie, 59, was ready to move into a place of her own.

So, on an arid Saturday morning this past summer, the sisters piled into a friend’s pickup truck and headed for a mobile-home sales lot here just outside the impoverished Navajo reservation.

The women — one in a long, colorful tribal skirt, another wearing turquoise jewelry, a traditional talisman against evil — were steered to a salesman who spoke Navajo, just like the voice on the store’s radio ads.

He walked them through Clayton-built homes on the lot, then into the sales center, passing a banner and posters promoting one subprime lender: Vanderbilt Mortgage, a Clayton subsidiary. Inside, he handed them a Vanderbilt sales pamphlet.

“Vanderbilt is the only one that finances on the reservation,” he told the women.

His claim, which the women caught on tape, was a lie. And it was illegal.

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Fifth Third Bank Accused of Bias in Lending

CINCINNATI (CN) – Fifth Third Bank allowed auto dealers to hike interest rates on car loans to black and Hispanic buyers, the Justice Department claims in a lawsuit.
According to a complaint filed in Federal Court on Monday, the bank’s policy was done “in a hidden manner not based on the borrower’s creditworthiness or other objective criteria related to borrower risk.”
The lawsuit says the bank’s policy was done “in a hidden manner not based on the borrower’s creditworthiness or other objective criteria related to borrower risk.”
An investigation by the Consumer Financial Protection Bureau revealed the policy has been in effect as far back as 2010.
The agency says Fifth Third’s “lack of compliance monitoring” meant “the average African-American victim was obligated to pay over $200 more during the term of the loan because of discrimination, and the average Hispanic victim was obligated to pay over $200 more during the term of the loan because of discrimination.”

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Oakland Accuses Wells Fargo of Steering Blacks and Latinos Toward Bad Loans


We heard this story before.. Wells Fargo still is repeated offender in redlining…Court document is linked to the article…

Oakland is accusing Wells Fargo Bank of systematic predatory lending to minorities.

In a federal lawsuit filed last week, the city alleges that the bank targeted blacks and Latinos, steering them toward risky, likely-to-fail loans — the kind that caused many families to lose their homes in the ongoing foreclosure crisis.

Oakland City Attorney Barbara Parker says the city has collected proof, including the testimony of former Well Fargo employees, suggesting the bank intentionally gave more expensive loans to African-American and Latino residents. Parker says minorities with good credit were given bad loans, in contrast to loans given to white borrowers with the same credit and income.

“Some of the testimony that we have gotten indicates that they felt that these borrowers were less sophisticated,” Parker says. “In some cases there’s comments that they thought they were less intelligent. It’s hard to imagine that being the case today, but in effect that’s what happened over years.”

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Evans Bank settles with New York over redlining

The State of New York announced Thursday that it reached a settlement with Evans Bank (EVBN) over allegations of unlawful discriminatory mortgage practices, also called redlining.

New York sued Evans Bank last year, accusing the bank of “systematically” denying its mortgages and services to African-Americans in the Buffalo metro area.

According to the lawsuit, Evans Bank allegedly created a map of its lending area, which included most of the city of Buffalo, but excluded the predominately African-American neighborhoods on Buffalo’s East Side.

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Miami mortgage lawsuits vs BofA, Citigroup, Wells Fargo are revived

(Reuters) – A federal appeals court on Tuesday revived three lawsuits in which the City of Miami accused Wells Fargo & Co, Bank of America Corp and Citigroup Inc of predatory mortgage lending to black and Hispanic borrowers.

By a 3-0 vote, the 11th U.S. Circuit Court of Appeals said a lower court erred in dismissing the city’s claims under the federal Fair Housing Act, over what Miami called a decade of lending discrimination in its residential housing market.

“It is clear that the harm the city claims to have suffered has a sufficiently close connection to the conduct the statute prohibits,” Circuit Judge Stanley Marcus wrote.

U.S. cities including Baltimore, Chicago, Cleveland, Los Angeles and Memphis have with mixed success accused banks of biased mortgage lending that prolonged the nation’s housing crisis.

Miami alleged that Wells Fargo, Bank of America and Citigroup steered non-white borrowers into higher-cost loans they often could not afford, even if they had good credit.

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Bank of America is accused of racial discrimination in Cleveland in black, Latino neighborhoods

CLEVELAND, Ohio — Bank of America discriminates against minorities in Cleveland by neglecting foreclosed homes it owns in black and Latino neighborhoods while taking good care of foreclosed homes in white neighborhoods, the National Fair Housing Alliance said Tuesday.

The NFHA said it’s expanding its 2-year-old complaint filed with the U.S. Department of Housing and Urban Development to include Cleveland, Kansas City, New Orleans and Vallejo, Calif.

In a news conference Tuesday, NFHA said the nation’s second-largest bank practices housing discrimination by allowing foreclosed homes in black and Latino neighborhoods to decline while attending to homes in white neighborhoods, in violation of the federal Fair Housing Act.

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