INDIANAPOLIS (WISH) – A lawsuit alleging home loan discrimination against blacks has been settled. News8 first covered the Central Indiana Center for Fair Housing case against the Old National Bank in October.
In short, the settlement aims to counter the disparities in lending for the black residents of Marion County looking to purchase a home. According to the original lawsuit, blacks acquired less than 2% of all mortgage loans approved by Old National in a one-year period.
For generations, black access to home ownership has been a narrow scope. Redlining—a system that kept blacks in certain geographic areas—is blamed for much of it.
While redlining is not legal, some believe that current regulations in place still prevent blacks and other minorities from getting mortgages as easily as their white counterparts. Although not related to the case, News 8 recently spoke to Senator Greg Taylor.
“You had a red line. And you had the situation where you have people getting ratings. And one appraiser sees them. And then a white person shows up and their rating goes up 70%,” Taylor said.
The lawsuit brought by the Central Indiana Center for Fair Housing alleged that the old National Bank treated black homeowners differently, even closing bank branches in predominantly black neighborhoods.
As part of the settlement, Old National Bank agreed to create more than $27 million in loans for eligible black applicants and contribute more than $3 million to create programs to help black home seekers obtain mortgages, along with other support over three years. Years.
The FHCCI hopes more banks will follow suit, saying in a statement, “We encourage other lenders in the area to ensure that the mortgage needs of the underserved and still living with the historical disparities that have kept so many owners of color from the opportunity to own a home are met.” .
Another part of the settlement includes further re-planning of the assessment of housing markets in other cities such as Fort Wayne and Evansville.