First Tennessee Bank, N.A., has agreed to settle allegations that it discriminated against blacks and Hispanics who were applying for home loans.
The allegations were lobbed against the
Memphis, Tennessee-based financial institution by the National Community Reinvestment Coalition.
A complaint was filed just this past October with the Department of Housing and Urban Development by the coalition against First Tennessee.
In addition to utilizing discriminatory terms in making loans, the coalition claims that the bank denied mortgage applications from prospective black and Hispanic borrowers at a higher rate than their white counterparts.
The actions allegedly took place in Tennessee.
First Tennessee denied allegations that it discriminated against loan applicants.
Still, the company reached a conciliation agreement to settle the allegations, according to an announcement Monday from HUD.
The agreement requires that First Tennessee establish a $1.5 million subsidy fund to provide interest-rate reductions on home loans as well as assistance with down payments and closing costs.
The lender will contribute $375,000
towards property repairs and foreclosure prevention in predominantly minority communities.
In addition, the NCRC will receive $25,000 from First Tennessee.
