By J. Preston Carter, J.D., LL.M.
The U.S. Department of Housing and Urban Development announced a $1 million agreement between Fidelity Bank and the Fair Housing Project of Legal Aid of North Carolina to resolve allegations the mortgage lender engaged in unfair lending practices against minority applicants. The agreement stems from a complaint that was filed by the Fair Housing Project, a HUD Fair Housing Initiatives Program agency based in Raleigh, N.C.
“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.”
Under the agreement, North Carolina-based Fidelity, without admitting fault or liability, 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.
In addition, Fidelity will display a HUD Fair Housing poster at its Oberlin Road branch in Raleigh. The bank will also prominently display its non-discrimination policies at that branch in English and Spanish, and provide fair lending training to staff, including loan originators and employees engaged in loan processing and underwriting.
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