Newsroom
June 29, 2016
CFPB, DoJ require BancorpSouth to pay $10.6M for lending practices
CFPB and the Justice Department on Wednesday announced a joint action against BancorpSouth Bank for discriminatory mortgage lending practices that affected minority borrowers. If the court approves of the consent order, Bancorp will pay $10.6 million to address its actions.
The filed complaint alleges that BancorpSouth engaged in numerous discriminatory practices, such as redlining in Memphis, discriminating in underwriting certain mortgages, discriminating in pricing certain mortgage loans, and implementing an explicitly discriminatory denial policy.
Pending court approval, BancorpSouth, a regional bank headquartered in Tupelo, Miss., will be forced to pay $4 million in direct loan subsidies to minority neighborhoods in Memphis; at least $800,000 for community programs, advertising, outreach, and credit repair; $2.78 million to African-American consumers who were unlawfully denied or overcharged for loans; and a $3 million penalty.
The order also requires BancorpSouth to extend credit offers to minority borrowers, expand its physical presence in the form of another branch or loan production office in a high-minority neighborhood in Memphis, and treat applicants fairly regardless of race.
The filed complaint alleges that BancorpSouth engaged in numerous discriminatory practices, such as redlining in Memphis, discriminating in underwriting certain mortgages, discriminating in pricing certain mortgage loans, and implementing an explicitly discriminatory denial policy.
Pending court approval, BancorpSouth, a regional bank headquartered in Tupelo, Miss., will be forced to pay $4 million in direct loan subsidies to minority neighborhoods in Memphis; at least $800,000 for community programs, advertising, outreach, and credit repair; $2.78 million to African-American consumers who were unlawfully denied or overcharged for loans; and a $3 million penalty.
The order also requires BancorpSouth to extend credit offers to minority borrowers, expand its physical presence in the form of another branch or loan production office in a high-minority neighborhood in Memphis, and treat applicants fairly regardless of race.
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