United States v. Mid America Bank

No. 02C 9458 (N.D. Ill. Dec. 30, 2002) ; Clearinghouse Number: 55055

Description

To Settle Redlining Case, Chicago Bank Offers $10 Million in Special Financing to Borrowers in Minority Neighborhoods

Abstract

The parties settled this action challenging defendant bank’s lending practices. Plaintiff United States alleged that, in operating and expanding its business, defendant met the residential real estate–related lending and credit needs of predominantly white residential areas throughout the Chicago metropolitan statistical area, including Cook County and Chicago, and avoided serving the lending and credit needs of majority African American and combined African American and Hispanic neighborhoods, which were located almost exclusively in Chicago and the remainder of Cook County. Plaintiff also alleged that defendant opened new offices to serve the residential lending and credit needs of predominantly white areas but not those of predominantly African American or African American and Hispanic neighborhoods. Plaintiff claimed that defendant’s actions violated the Fair Housing Act, 42 U.S.C. § 3604, and the Equal Credit Opportunity Act, 15 U.S.C. §1691(a)(1). Under the terms of the settlement, defendant (1) revised its Community Reinvestment Act assessment area to include all of Cook, DuPage, Will, and Kane counties; (2) will open two new branches in areas populated primarily by minorities and to undertake an advertising program specifically to generate significant additional residential real estate–related credit applications from qualified residents of minority neighborhoods; (3) will begin assessing the home mortgage residential real estate–related credit needs of individuals in certain designated census tracts; (4) will meet, in making this assessment, with representatives of at least five Chicago-area community organizations significantly involved in promoting fair lending or home ownership or development or both in designated census tracts; and (5) will invest an average of $2 million per year over the next five years in a special financing program offering residents of designated census tracts residential real estate–related loan products at interest rates or on terms or both that are more advantageous than would normally be given to the applicant.

Additional Information

Attorney Information
Docket Date
2002-12-30 00:00:00+00:00

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