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.

Published
Sep 01, 2015
Federal Court Shutters Sham Mortgage Relief Operation

FTC, California agency accuse 2 business owners of scam that cost consumers millions of dollars.

Regulation and Compliance
Sep 22, 2022
CFPB Seeks Input On Creating New Mortgage Products

Agency seeks information on refinances, mortgage products to promote competition and support household financial stability.

Regulation and Compliance
Sep 22, 2022
The Fed Raises Interest Rate 0.75% For The 3rd Time

Chairman said housing market may have to go through "a correction" to return to balance.

Regulation and Compliance
Sep 21, 2022
Fed Committee Gathers To Renew Inflation Fight

FOMC expected to announced 0.75% rate hike after 2-day meeting ends Wednesday.

Regulation and Compliance
Sep 20, 2022
MISMO Releases New Reference Model For Public Comment 

Version 3.6 of the MISMO Reference Model includes new data points and structures.

Regulation and Compliance
Sep 19, 2022
MBA, Other Organizations Want FHA's MIP Reduced

Submit letter to the White House & National Economic Council urging reduction in mortgage insurance premium.

Regulation and Compliance
Sep 14, 2022