Skip to main content

M&T Settles Discrimination Lawsuit

Phil Hall
Sep 01, 2015
Handshake Settlement/Credit: psphotograph

M&T Bank Corporation has settled a lawsuit that alleged it engaged in discriminatory practices in its New York City-based residential mortgage originations.

The lawsuit, which was filed in U.S. District Court, Southern District of New York, was brought in February by the Fair Housing Justice Center (FHJC) following a two-year investigation involving undercover testers of different racial and ethnic groups. FHJC charged M&T with using racial criteria related to specific New York neighborhoods and in discriminating against its non-White testers despite being provided with stronger personal income data than their White counterparts.

As part of the settlement agreement, the bank will pay $485,000 to the plaintiffs for damages and attorney’s fees. Additionally, the bank agreed to other policy changes, including the promise to prohibit steering and the providing of Home Mortgage Disclosure Act (HMDA) data by loan product to the FHJC.

“We are very pleased that the parties were able to resolve this lawsuit in a manner that ensures full compliance with fair housing laws and we look forward to working with the bank,” said FHJC Executive Director Fred Freiberg.

M&T made no mention of the settlement on its Web site, although it issued an unattributed statement through FHJC that stated it was “deeply committed to fair housing and fair lending” and that it was “pleased to have reached an amicable resolution of this matter.” The bank, however, did not make any acknowledgment that it violated fair lending laws, nor did it offer any apology for its previous actions.

Sep 01, 2015
Feds Reviewing Appraisal Standards, Qualifications

Appraisal Subcommittee said requirements are being reviewed to determine whether they ensure and promote fairness, equity, objectivity, and diversity, in both appraisals and in the training and credentialing of appraisers.

Regulation and Compliance
Oct 20, 2021
​​​​​​​FHFA OK's Desktop Appraisals, Expands Refi Criteria

The Federal Housing Finance Agency (FHFA) said Monday it will take two steps to help make home ownership more affordable and sustainable for mortgage borrowers, especially for those in underserved communities. 

Regulation and Compliance
Oct 19, 2021
CFPB Names 4 To Key Senior Positions

The appointees include two who helped create the bureau and two who served on the CFPB staff during the Obama administration.

Regulation and Compliance
Oct 14, 2021
FHFA Raises Enterprises' Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA) said the 2022 multifamily loan purchase caps will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market.

Regulation and Compliance
Oct 13, 2021
CFPB Hits AAG With Complaint For Deceptive Marketing Of Reverse Mortgages

The Consumer Financial Protection Bureau filed a complaint and proposed consent order, which alleges that American Advisors Group (AAG) used inflated and deceptive home estimates to attract reverse mortgage consumers.

Regulation and Compliance
Oct 12, 2021
Waterstone Mortgage Names VP Of Compliance

Waterstone Mortgage Corporation named Kris Barros as the company's vice president of compliance.

Oct 08, 2021