Items Tagged with 'discrimination in lending'

ARTICLES

  • Minnesota's KleinBank reaches settlement with DOJ over redlining allegations

    Bank will expand service area to include certain minority neighborhoods
    The Department of Justice and Minnesota-based KleinBank reached a settlement agreement covering charges that the bank excluded minority neighborhoods from its service area and engaged in discriminatory lending. Now, despite continuing to disagree with the government’s claims, the bank is settling with the DOJ in order to move forward.
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  • Sacramento sues Wells Fargo over lending discrimination

    Lawsuit accuses bank of targeting minority borrowers with high-cost loans
    For the second time in less than a year, a major city is suing Wells Fargo for alleged discriminatory lending practices against minority borrowers. Last year, the city of Philadelphia sued Wells Fargo. Now, Sacramento is suing Wells Fargo as well for allegedly steering minority borrowers to high-cost loans.
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  • Court of Appeals hands Wells Fargo victory over Los Angeles in fair housing lawsuit

    Appeals upholds lower court’s dismissal of discriminatory lending suit
    Wells Fargo may be facing a lawsuit from the city of Philadelphia over alleged discriminatory lending practices against minority borrowers, but a federal Court of Appeals just handed the bank a victory in a similar lawsuit brought by the city of Los Angeles back in 2013.
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  • Supreme Court rules cities can sue banks for predatory lending

    Hands partial victory to Miami in suits against Bank of America, Wells Fargo
    The Supreme Court handed down a landmark ruling, stating that cities can sue banks for discriminatory mortgage lending practices, but cautioned that the burden of proof could be difficult to achieve. The ruling stems from a lawsuit brought by the city of Miami, which sued Bank of America, Wells Fargo and Citigroup in 2013, stating that the banks engaged in predatory lending to minority borrowers in the city.
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  • JPMorgan Chase officially reaches $53 million settlement for lending discrimination

    Wholesale lending brokers accused of charging higher rates to minorities
    Confirming reports that began to emerge last week, JPMorgan Chase officially reached a settlement with the Department of Justice over allegations that the bank’s brokers charged higher interest rates to minority borrowers than white borrowers in the run-up and during the financial crisis. Initial reports pegged the settlement amount at $55 million, but the actual settlement amount is slightly lower, checking in at $53 million.
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  • Minnesota's KleinBank accused of discriminatory lending

    DOJ accuses bank of redlining minority neighborhoods
    Minnesota-based KleinBank excluded minority neighborhoods from its service area for all banking services and engaged in discriminatory lending, the Department of Justice claimed in a lawsuit filed late last week. According to the Department of Justice, none of KleinBank’s branch locations in the Minneapolis-St. Paul metro area is located in a minority neighborhood, a practice known as “redlining.” The bank denies the DOJ's allegations.
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  • HUD charges Bank of America with lending discrimination

    Accused of discriminating against Hispanic mortgage borrowers
    The Department of Housing and Urban Development announced Friday that it is charging Bank of America and two of its employees with discriminating against Hispanic mortgage borrowers. According to the National Fair Housing Alliance and HUD, Hispanic prospective mortgage borrowers were given inferior loan options when compared to non-Hispanic prospective borrowers.
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  • Two Ohio-based banks settle "redlining" allegations

    Will invest $9 million in minority communities in Ohio and Indiana
    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 the Department 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.”
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