An Indiana-based bank has settled a federal discrimination lawsuit by a fair housing organization and has agreed to direct more housing loans to majority-Black neighborhoods, the Associated Press reports.
Old National Bank in Evansville was charged with the allegations by the Fair Housing Center of Central Indiana in an October lawsuit that the bank discriminated against African Americans in Indianapolis, which violates the Fair Housing Act.
According to the terms of the settlement, Old National will underwrite more than $27 million in loans to qualified Black applicants and will contribute $3 million to create programs to assist potential Black home buyers secure mortgages and to invest in majority-Black neighborhoods. Additionally, it is also required to invest a minimum of $1.1 million into a loan subsidy program to provide borrowers with up to $10,000 to help cover closing costs, down payments, mortgage insurance.
Amy Nelson, executive director of the Fair Housing Center, noted that the agreement will provide “more mortgage opportunities, bank branches, neighborhood stabilization grants, and fair lending education.”