Lawsuit: Indiana Bank Discriminates Against Black Mortgage Borrowers
In SummaryA fair housing nonprofit filed a lawsuit against Old National Bank accusing it of redlining and discriminating against Black borrowers.
A housing nonprofit filed a lawsuit last week against Indiana’s Old National Bank, alleging that it discriminates against Black mortgage borrowers, the Associated Press reported.
The Fair Housing Center of Central Indiana said that the bank, one of the oldest in the state, implements strategies that limit its residential lending business to white customers in primarily white areas.
It also accused Old National Bank of removing its branches in Black neighborhoods and practices the illegal policy of redlining.
“Over the time period reviewed, Old National Bank has been one of the worst performers in making mortgage loans to Black home seekers in Central Indiana,” Amy Nelson, executive director of the FHCCI, said in a press release. “Old National’s peer lenders did a substantially better job at serving the credit needs of Black residents.”
The fair housing organization has asked the court to place a permanent injunction requiring Old National Bank to address redlining and to pay damages, per AP.
According to a fair housing investigation, FHCCI found that out of 2,250 mortgage loans it approved in the Indianapolis-Carmel-Anderson metropolitan area in 2019 and 2020, only 37 went to Black mortgage borrowers. According to the lawsuit, it also identified the person’s race on over 91% of those loans.
Old National Bank denied the accusations in the suit, saying, “strongly and categorically denies the claims made by the Fair Housing Center of Central Indiana regarding certain lending practices. Old National is committed to engaging in fair and equal lending practices.”