Links in “Discriminatory Practices/Disparate Impact”
- L.A. Goes After BofA for Discriminatory Lending
It's not just regulators or activist groups looking at fair lending data. The city of Los Angeles filed suit against Bank of America alleging discriminatory lending, practices that contributed to a higher number of foreclosures in minority neighborhoods, declining property values and lost tax revenue, and an estimated $1.2 billion in safety inspections, property maintenance and other expenses related to foreclosures. [12/10]
- Squeeze Play: Despite Dubious Data, Banks Inclined to Settle Racial Discrimination Claims
Even though the reports rely on comparisons such as a $669,000 foreclosed house in a white neighborhood to one listed for $35,000 in a minority community, banks are eager to settle untested racial discrimination charges surrounding the upkeep of foreclosed homes, such as the $42 million deal HUD worked out between Wells Fargo and the National Fair Housing Alliance. [12/4]
- Credibility of Activist Group’s Housing Data In Question
A review of the National Fair Housing Alliance's claims against banks alleging racial discrimination in failure to maintain foreclosed homes in predominantly minority neighborhoods raises doubts about the data used by the group. [12/3]
- A Look at Life Without Dealer Participation
CFPB argues that the dealer finance participation model is fatally flawed because it allows dealers a level of discretion that results in higher rates for minority borrowers. [11/18]
- With No New Supreme Court Case on the Horizon, “Disparate Impact” Is Here to Stay for Awhile
Attorney chimes in on the missed opportunity due to the recent Mt. Holly settlement: "This issue isn't going to go away." [11/18]
- Second Disparate Impact Shoe Drops: Mt. Holly Settles
The second opportunity to gain clarity from the Supreme Court on the issue of disparate impact effectively disappeared last night when the Mount Holly town council voted last night to approve a settlement. [11/14]
- Auto Lending: CFPB Fires Second Shot Over the Bow
Why the CFPB may have issued a second warning on discrimination in auto lending and what may be coming next. [11/14]
- Mt. Holly May Vote Tonight on Disparate Impact Case
Settlement would again avert the Supreme Court's ruling on the issue of disparate impact, in which it is not necessary to show intent to discriminate, only that a policy has had a disproportionate effect on racial minorities. [11/6]
- HUD Hits Deutsche Bank Hard for Fair Housing Violations
HUD and Deutsche Bank agree upon $12.1 million settlement for 2007-2008 actions of an indirect subsidiary of the Bank (MortgageIT, Inc.). Allegations focused on the residential lender discriminating practices against African American and Hispanic borrowers seeking mortgage loans including charging higher APRs and fees than similarly-situated white borrowers and denying minority applicants loans more often than similarly-situated white applicants. Findings present key comparative statistical analysis that should be analyzed by every FI to ensure practices are not occurring. [11/6]
- Pregnant Pause and Penalty against BofA
Bank of America fined $45,000 for resolution of allegations that the lender discriminated against pregnant women seeking mortgage loans. Broader potential impact for all lenders to ensure that their practices do not include similar practices that included settlement date and denial of application due to discounting of income for pregnant woman. BofA praised for cooperation in working with HUD. [11/5]
