WASHINGTON (5/29/15)--One of the largest cases of “redlining” complaints brought by the federal government against a mortgage lender was announced Wednesday by the U.S. Department of Housing and Urban Development (HUD).
Wisconsin-based Associated Bank N.A. has agreed to a $200 million settlement, which is the largest of its kind HUD has ever reached, according to the agency.
Redlining refers to the practice of lenders changing more for or denying services to residents in particular areas, with racial discrimination often an end result.
A HUD secretary-initiated complaint alleges that from 2008 to 2010 Associated Bank engaged in discriminatory practices regarding the denial of mortgage loans to African-American and Hispanic applicants, as well as for loan services in predominantly African-American or Hispanic neighborhoods.
Per terms of the settlement agreement, Associated Bank has agreed to: