News
Bank Settles Multimillion-Dollar Lending Discrimination Suit
March 1, 2016
The First Federal Bank of Kansas City just ponied up $2.8M to settle charges of excluding minority neighborhoods from its lending service area, aka “redlining.”
The Department of Housing and Urban Development alleges the bank redlined several African-American neighborhoods, violating the Fair Housing Act.
The settlement, which stems from complaints filed by two fair housing groups, also commits the bank to originating $2.5M in mortgages in African-American neighborhoods and supporting rehab of vacant homes and outreach in the redlined communities, HousingWire reports.
The case comes on the heels of a series of settlements after regulators challenged banks over CMBS fraud allegations. [HW]
