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Article: Maryland thrift in settlement with Justice Department. (Chevy Chase Federal Savings Bank) (New Action on Minority Loan Front)
- Article from:
- American Banker
- Article date:
- August 23, 1994
- Author:
CopyrightCOPYRIGHT 1994 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- Chevy Chase Federal Savings Bank settled a fair-lending claim Monday by agreeing to fund $140 million in discounted loans for residents in predominantly African-American communities in the Washington metropolitan area.
Announcing the settlement Monday, Attorney General Janet Reno said this is the first time the Justice Department has gone after a bank because it does not have branches in minority areas.
"You can't deny service if no service is offered,"' Ms. Reno explained. Noting that Chevy
Chase has made 97% of its loans in predominately white areas and that 95% of its mortgage applicants were white, Ms. Reno said, It's discrimination, pure and ...