Old National Settles Housing Loan Discrimination Lawsuit
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
An Indiana-based bank has agreed to direct more housing loans to majority-Black neighborhoods in settling a federal discrimination lawsuit filed by a fair housing organization.
Evansville-based Old National Bank faced allegations in the Fair Housing Center of Central Indiana’s October lawsuit that the bank engaged in housing discrimination against Blacks in Indianapolis in violation of the Fair Housing Act.
The settlement agreement calls for Old National to originate more than $27 million in loans to qualified Black applicants and contribute more than $3 million to create programs to help Black home seekers secure mortgages and to invest in majority-Black neighborhoods, the Indianapolis Business Journal reported.
Fair Housing Center executive director Any Nelson said the agreement will provide more mortgage opportunities, bank branches, neighborhood stabilization grants and fair lending education.
Old National denied any wrongdoing in the settlement agreement and said it will work toward strengthening underserved and low-income neighborhoods.
Under the terms of the settlement, Old National will invest a minimum of $1.1 million into a loan subsidy program which will provide borrowers with up to $10,000 to help cover down payments, mortgage insurance premiums and closing costs.