Additional Coverage:
- Mortgage lender to pay nearly $10M to settle ‘redlining’ allegations in Black neighborhoods (newsbreak.com)
Mortgage Company Settles Redlining Allegations
A mortgage company has agreed to pay millions in penalties for allegedly refusing to provide mortgages to majority-Black neighborhoods in Birmingham, Alabama.
Justice Department Investigation
The Department of Justice (DOJ) accused Fairway Independent Mortgage Corporation of discouraging Black residents from applying for loans. This practice, known as redlining, violates federal fair lending laws.
Settlement Details
As part of a settlement, Fairway will pay $8 million to fund a loan subsidy program and invest $1 million in affordable housing in Birmingham’s Black communities. The company will also pay a $1.9 million civil penalty.
Combating Redlining
The DOJ has been actively pursuing redlining cases in recent years. This settlement is the 15th such case in three years, resulting in over $1 billion in investment in communities of color nationwide.
Historical Roots
Redlining has a long history in the United States, dating back to the 1930s when federal policies created barriers to homeownership for Black Americans.
Continued Efforts
The DOJ’s actions demonstrate its commitment to combating discrimination in lending and ensuring fair access to housing for all. The settlement sends a message that redlining will not be tolerated.