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.
