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Thanks to redevelopment efforts in the once-neglected downtown areas of Buffalo, Detroit and other cities, banks are seeing improvements to their bottom lines. Banks and developers credit a federal historic tax credit program for the results.
May 6 -
Expanded reporting requirements under the Home Mortgage Disclosure Act will give regulators access to a panoply of sensitive data. Banks should take steps to address any fair lending issues before the new rules take effect, according to Warren W. Traiger.
August 12 -
A community group opposes Banc of California's plans to buy 20 branches, saying management isn't being open about plans to serve low-income and minority customers. The bank says its all a misunderstanding. Still, the issue shows why banks must foster good relations with powerful advocacy groups.
July 16
New York Attorney General Eric Schneiderman has charged Evans Bancorp in Hamburg, N.Y., with deliberately failing to provide mortgages in minority neighborhoods in Buffalo.
In
"Redlining is illegal, discriminatory, and must be made a thing of the past, once and for all,"
The suit charges Evans with creating a map of its service area in Buffalo that intentionally excluded certain African-American neighborhoods. It also alleges that the bank refused to market to minority customers, and designed loan products to automatically disqualify residents on the city's east side.
Between 2009 and 2012, only four of the 1,114 residential mortgage applications received by Evans were from African-American applicants, according to the release. Eight of the applications were from residents of Buffalo's east side.
"Evans Bank is disappointed to learn that the attorney general has filed a formal complaint against our company regarding residential lending practices," David Nasca, president and chief executive, said in a press release. "We continue to believe these allegations are without any merit, and we intend to vigorously challenge them."
Legal action over the bank's lending practices has been expected for months. The bank revealed in its 2013 annual report that it was under investigation by the state attorney general's office, according to
The bank also
The lawsuit is part of an ongoing investigation by Schneiderman's office into mortgage redlining across the state, according to his release.