New York: Bank didn't lend to blacks in Buffalo

[Omaha Steve]

Source: AP-EXCITE

ALBANY, N.Y. (AP) — A bank refused to offer mortgages to African-Americans living in Buffalo, New York's attorney general said in a lawsuit that he said was part of a wider investigation into an illegal practice known as redlining.

Evans Bank violated fair housing and discrimination laws by intentionally denying services and products to Buffalo's east side, home to more than 75 percent of the city's African-American population, the federal lawsuit alleges.

The bank's president, David Nasca, called the accusations "meritless." He said Evans, which has 13 branches in western New York, will vigorously defend itself.

"We remain confident that our residential lending practices meet all applicable laws and regulations," Nasca said in a statement emailed to The Associated Press.

FULL story at link.


Read more: http://apnews.excite.com/article/20140902/us--bank-redlining_lawsuit-f2f1aea0ec.html

[WovenGems]

1. The plan

Violate the law then argue in court that anti-discrimination laws are discriminatory in that they don't allow personal bias.
Don't analyze this plan or you get a headache.

[Wellstone ruled]

2. Same crap happened in the Twin Cities back in the

1970's. Norwest Bank which latter was merged with Wells Fargo was charged with Red Lining which is basically the same thing. Slap on the wrist. BTW,same group did no-doc's to folks that had a pulse,and a line of BS,which as everyone found out,housing collapse. When you would see part-time College and,yes,High School Students pushing paper and doing UnderWriting,you just knew this was going to go bad. Just push the paper so their Team Lead would get their Bonus or Perks.

[Gormy Cuss]

4. In 1975, strong new reporting requirements became law for most lenders

and that put the brakes on redlining. The law is the Home Mortgage Disclosure Act (HMDA.) The way it's written all large banks and lenders pretty much have to comply and provide data on the demographics of their lendees and applicants.

If Evans Bank has been redlining the HMDA data should be the start of a case against the bank. I'm guessing that it's big enough to be required to report (13 branches) but I don't know.

[indepat]

3. Mr. Nasca can take comfort that the proof lies in the bank's pudding

[mwooldri]

5. Except for state borders, isn't it unwise to define a "lending area" ?

After all, even if it was defined in such a way to attempt to ensure that the area defined is non-discriminatory... somehow someone along the line will be unintentionally discriminated against - and unintentional discrimination is still unlawful.