Tennessee Bank Denies Racial Discrimination Charges, But Agrees To Cough Up $1.9 Million Anyway To Resolve Allegations That It Screwed Blacks, Hispanics In Its Home Lending Practices

In Memphis, Tennessee, The Commercial Appeal reports:

• First Tennessee Bank has reached a $1.9 million settlement with the U.S. Department of Housing and Urban Development, resolving allegations that the bank discriminated against African-Americans and Hispanics, HUD said [].
  
  Under the agreement, the Memphis-based bank will establish a $1.5 million fund to provide interest-rate reductions on home mortgages, and down payment or closing-cost assistance to qualified borrowers in parts of Memphis, Chattanooga, Knoxville and Nashville.
  
  The Memphis-based bank will also support community organizations that provide services such as home repair or financial assistance to homeowners in predominantly minority communities, HUD said.
  
  In the agreement, First Tennessee denied allegations that it engaged in prohibited discriminatory lending, saying the organization that brought the complaint, the National Community Reinvestment Coalition, did not provide evidence to support its claims. First Tennessee said that it entered the settlement to avoid "the extraordinary expense to all parties" of a lengthy investigation by HUD.

For more, see First Tennessee reaches $1.9M settlement with HUD over discrimination allegations.

For the HUD press release, see HUD And First Tennessee Bank Reach $1.9 Million Settlement (Agreement resolves claims of discrimination against African American and Hispanic borrowers).