Description: The following passage is talking about m&t bank login. A lawsuit filed in Manhattan alleges that M&T Bank violated the 1968 Fair Housing Act by excluding loans from black, Asian and Latino applicants while offering those loans to white applicants with a less qualified background.
One of the nation’s largest banks is coming under fire for reportedly discriminating against black, Latino and Asian home buyers offering loans to less qualified white borrowers according to a lawsuit filed this week in Manhattan. The lawsuit claims that M&T Bank violated the landmark Fair Housing Act that sought to end discriminatory lending practices and limit the historic segregation of many of the country’s cities.
Joining me now from ProPublica is Nicole Hanna Jones, one of the journalists who helped to break this story, Nicole, thanks for being on, according to your article between 2012 and 2014, the Fair Housing Justice Center conducted a series of tests in which it sent out essentially trained actors to explore whether or not white and non-white homebuyers would be treated differently when they were trying to pre qualify for a mortgage, what did they find?
What they found is that they sent in these actors who would have different profiles, in each case the white actor presented with a slightly less qualified profile, lower credit score, less cash on hand, in each of those cases the white tester was offered either a higher loan amount or loan that was not offered to the non-white testers.
In terms of the numbers of a white applicant with slightly lower income and credit scores and nine thousand dollars less in savings was pre-approved for a loan, but in another case the Latina candidate was told that she would qualify for a mortgage that was a hundred and twenty five thousand dollars less than the test white candidate with lower income poor credit and less cash.
When we look at this kind of story, is this isolated to this one Bank or do you believe that this is across the board happening within the mortgage industry? It’s hard to tell what’s happening across the board, but what we know is that there have been several big lawsuits and settlements brought by the Justice Department looking at lenders, Wells Fargo countrywide are charging those lenders with offering different terms to African American and Latino buyers.
We know that this is happening, we don’t know how widespread it is, but this case definitely pulls back the curtain to what might be happening in banks, the lawsuit also asserts that in addition to white testers being favored, the bank ran of first-time homebuyers loan program that use the racial makeup of the area where the home was to be purchased as part of their criteria.
What M&T; Bank said on its website was that this first-time homebuyer program required that buyers to buy in to moderate income neighborhoods, the government has a criteria for what that means, but when borrowers came in, the testers came into the bank, they were also told that this loan could be used either in low to moderate income areas or in neighborhoods of any income that were less than half white.
The belief is that that’s illegal under the Fair Housing Act that you cannot steer communities or people into different communities based on the race and that you also cannot offer programs that are race-based, it’ll be interesting to see how this lawsuit comes together, Nicole Hannah Jones, thanks for your time.