HUD Announces $2.5MM Fair Lending Settlement

The U.S. Department of Housing and Urban Development, the Metropolitan St. Louis Equal Housing Opportunity Council (EHOC), and First National Bank of St. Louis recently announced a conciliation agreement that will increase the bank's commitment to minority and low-income communities. As part of the agreement, the bank will invest more than $2.5 million over four years in St. Louis City, North St. Louis County, and St. Clair County, Illinois.


A copy of the conciliation agreement is available at:

http://www.hud.gov/offices/fheo/library/10-EHOC-First-National-BankSt-Louis-Agreement-121710.pdf


The agreement reportedly comes after HUD investigated and conciliated a fair housing complaint that was filed by EHOC, a fair housing organization, alleging that the Bank failed to locate branches and provide banking services in African-American neighborhoods.

Under the agreement, First National Bank of St. Louis will finance the construction of rental housing and community development projects in African-American neighborhoods, offer affordable mortgages, and promote consumer financial literacy education. The agreement also calls for the bank to conduct the following activities in the St. Louis area of Missouri and Illinois:

* Open a new bank branch in a majority African-American Census tract;

* Provide $2 million in community development loans and investments;

* Fund a Special Financing Program with $500,000 to provide mortgage rate discounts, down payment assistance, and closing cost assistance;

* Make available Spanish language services in all branches, particularly in loan negotiations;

* Increase its marketing, advertising, and outreach activities;

* Invest $100,000 to provide credit counseling and financial literacy training to residents;

* Offer residents free checking accounts with no fees or minimum balance; and

* Provide $100,000 for fair housing and community reinvestment activities.