Hudson City Savings Bank Settles Mortgage-Discrimination Suit for $32.75 Million
Mortgage discrimination against black and Hispanic communities has led to a proposed $32.75 million settlement between Hudson City Savings Bank and the federal government.
The New Jersey-based lender located branches, chose mortgage brokers and marketed loans that discouraged borrowers in predominantly minority communities, said the Consumer Financial Protection Bureau and Justice Department on Thursday.
Pending court approval, Hudson City would need to pay $25 million for a loan subsidy program to increase access to mortgages in black and Hispanic neighborhoods. It would also owe $2.25 million for community programs and outreach and $5.5 million in penalties.
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