NC Bank Agrees To Invest $1 Million In Predominantly Minority Neighborhoods To Resolve Allegations It Engaged In Discriminatory Lending Practices Against Minority Applicants

The U.S. Department of Housing & Urban Development recently announced:

• The U.S. Department of Housing and Urban Development (HUD) announced [] a $1 million agreement between the Fair Housing Project of North Carolina Legal Aid and North Carolina-based Fidelity Bank to resolve allegations the mortgage lender engaged in unfair lending practices against minority applicants. Read the agreement.
  
  The Fair Housing Act makes it unlawful to make housing unavailable or to discriminate in the terms, conditions, or privileges of the sale of a dwelling because of race. The Fair Housing Act also makes it unlawful for any person or entity whose business includes residential real estate-related transactions to discriminate in these transactions, or terms or conditions, because of race. Banks and other lenders are prohibited from discriminating with respect to home mortgage loans.
  
  “Whether intentional or not, stark disparities exist in lending patterns and access to credit along racial and ethnic lines,” said HUD Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez. “HUD remains committed to not only enforcing the law, but also facilitating productive relationships between lenders and advocacy groups that help make lenders more aware of their obligations under the Fair Housing Act.”
  
  The Conciliation Agreement stems from a complaint that was filed by the Fair Housing Project, Legal Aid of North Carolina, Inc., a HUD Fair Housing Initiatives Program agency based in Raleigh, alleging that the bank denied or made housing and home mortgage loans unavailable because of race.(1)
  
  Under the agreement, Fidelity will make investments and community development loans in predominantly minority census tracts where at least 40 percent of these loans will specifically promote affordable housing. For this purpose, the Bank has committed to earmarking at least $500,000 each year for two years, for a total of $1 million.

Source: HUD Announces Agreement With Fidelity Bank To Resolve Allegations Of Unfair Lending Practices (Lender will invest $1 million in predominately minority neighborhoods).

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(1) As a part of the non-profit law firm Legal Aid of North Carolina (LANC), the Fair Housing Project provides legal representation, advice, referrals, and information to individuals statewide who have experienced housing discrimination. Legal services are provided both through local LANC offices as well as through the Project’s full-time staff.