Memphis Bank resolves discrimination allegations against predominantly black and Hispanic neighborhoods – Finance and Banking
United States: Memphis Bank resolves discrimination allegations against predominantly black and Hispanic neighborhoods
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- The Consumer Financial Protection Bureau (“CFPB”) and the United States Department of Justice (“DOJ”) have reached an agreement with Trustmark National Bank (“Trustmark”) to resolve allegations that it discriminates against black and Hispanic borrowers in the United States. area of ââMemphis, Tennessee, in violation of the Dodd-Frank Consumer Financial Protection Act, Fair Housing Act and Equal Credit Opportunity Act and its regulations, regulation B.
- The complaint, filed concurrently with the proposed consent order, alleged that Trustmark discouraged applicants in predominantly black and Hispanic neighborhoods from applying for mortgages, including by not locating branches and assigning branches. loan officers in these neighborhoods. In addition, Trustmark allegedly failed to monitor its policies and procedures to comply with fair lending laws and regulations.
- Under the proposed consent order, Trustmark will fund a $ 3.85 million loan subsidy program for affected neighborhoods and be liable to a civil fine of $ 5 million to the CFPB, of which the CFPB will credit 4 million dollars for a penalty levied by the Office of the Comptroller of the Currency. Trustmark also agreed to open a new loan office in a predominantly black and Hispanic neighborhood of Memphis, fund targeted advertising to generate mortgage applications in predominantly black and Hispanic neighborhoods, and develop and deliver mortgage programs. consumer education for a period of five years. In addition, Trustmark will submit annual reports on its compliance with the Consent Order for a period of five years, among others.
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