Links in “Discriminatory Practices/Disparate Impact”
- CFPB Nixes its Headline-Grabbing Performance Review System
Agency responds to American Banker article that found white employees had a greater likelihood of receiving highest ratings in performance reviews over minorities by pledging to drop the current performance review system. [3/11]
- Speaking of Disparate Impact: CFPB Ranks its White Employees Higher Than its Minorities
According to American Banker, confidential agency data it obtained show a pattern of ranking white employees distinctly better than minorities in performance reviews used to calculate raises and bonuses. [3/6]
- Next Target: Group Says Bank Takes Better Care of Foreclosed Houses in White Neighborhoods
National Fair Housing Alliance files complaint against Deutsche Bank alleging that foreclosed houses it manages in black and Latino neighborhoods had more broken windows and trash in the yards in three cities it investigated. This is the third bank the group has filed similar complaints against. [2/26]
- HUD’s Inconsistent Stand on Eminent Domain and Disparate Impact
Housing and Urban Development takes a proactive stance on the controversial disparate impact issue, but has determined that the equally controversial use of eminent domain by local governments must be decided by the courts. [2/21]
- Group Accuses BofA of Discrimination Against Hispanic Mortgage Applicants
The National Fair Housing Alliance says it conducted an undercover probe of Bank of America consisting of sending a series of Latino and white individuals posing as prospective borrowers. [2/20]
- Symposium to Consider Financial Industry’s Treatment of “Communities of Color”
National Consumers League is sponsoring a Feb. 6 symposium in Washington D.C. described as "an examination of how many financial and other institutions have put communities of color at a disadvantage in the financial services arena, with an emphasis on mortgages, auto loans, student loans, and more. [2/4]
- Lumps of Coal: Regulators on a Roll with Large Money Judgments
Recap of recent regulatory actions against Ally Bank for illegal discrimination in purchasing loans from dealers, and Ocwen Financial for its illegal practices in addressing delinquent mortgage loans. [12/24]
- ‘Tis the Season: CFPB & DOJ File Discrimination Complaint
CFPB and DOJ file $35 million joint complaint against National City Bank (through successor PNC Bank) for seven-year span (2002 to 2008) of charging higher prices on mortgage loans to African-American and Hispanic borrowers than similarly creditworthy white borrowers. [12/24]
- Ally Settles for $98 Million for Auto Lending Discrimination
DOJ and the CFPB bring the hammer down, announcing the largest auto loan discrimination settlement in history against Detroit-based Ally Bank for engaging in nationwide pattern or practice of racial discrimination involving overages. Action comes on the heels of the CFPB bulletin informing indirect auto lenders they would be on the hook for any intentional or disparate impact on minorities. See also this coverage. [12/23]
- Nearly $100 Million Fine Levied Against Bank for Its Indirect Auto Lending
CFPB and DoJ action against Ally Bank comes on the heels of the CFPB bulletin informing indirect auto lenders they would be on the hook for any intentional or disparate impact on minorities. [12/23]
