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Article: Chevy Chase bias case addresses branching policy alone for first time. (Chevy Chase Federal Savings Bank F.S.B. discrimination in mortgage lending case)(includes related article on other mortgage discrimination cases)
- Article from:
- ABA Banking Journal
- Article date:
- October 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 Simmons-Boardman Publishing Corporation. 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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The federal government's attack on loan bias has taken a new turn with the summer's conclusion of a settlement agreement with a large Washington, D.C.-area thrift accused of redlining African-American neighborhoods.
Before the late August announcement of an $11 million settlement with $4.7 billion-assets Chevy Chase Federal Savings Bank and its mortgage company, the Justice Department's financial anti-bias cases had turned on loan underwriting issues (see box). The Chevy-Chase case focussed solely on the thrift's alleged refusal to branch by design into black neighborhoods. The Chevy Chase, Md.-based thrift, while settling, denied the charges and attempted to ...