Old National settles home loan discrimination lawsuit – archyde

(IIB Foto/Alex Brown)

An Indiana-based bank agreed to provide more home loans to black-majority neighborhoods in an attempt to resolve a state discrimination lawsuit filed by a fair housing organization.

Evansville-based Old National Bank faced allegations in the Central Indiana Fair Housing Center’s October lawsuit that the bank had discriminated against black people in Indianapolis in violation of the Fair Housing Act.

The settlement agreement calls for Old National to provide more than $ 27 million in loans to qualified black applicants and to contribute more than $ 3 million to the creation of programs that help black home hunters secure mortgages and in majority investing in neighborhoods inhabited by blacks Indianapolis Business Journal reported.

Fair Housing Center executive director Any Nelson said the agreement will provide more mortgage options, bank branches, grants to help stabilize the neighborhood, and education on fair lending.

Old National denied any wrongdoing in the settlement agreement, saying it would help empower underserved and low-income neighborhoods.

Under the terms of the settlement, Old National will invest at least $ 1.1 million in a loan subsidy program that will provide borrowers up to $ 10,000 to cover down payments, mortgage insurance premiums and closing costs.

Reference-www.nach-welt.com

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