By Matthew Russell Lee, Patreon Maxwell Book
SOUTH BRONX, July 12 – The FDIC on July 12 imposed a fair lending condition on banks Inner City Press / Fair Finance Watch challenged last November:
"Fair Finance Watch has been reviewing Peoples Security Bank and Trust Company and FNCB Bank including their 2022 HMDA data not taken into account in any CRA exam and finds it troubling. In Pennsylvania in 2022, Peoples Security Bank and Trust Company made 532 HMDA-reported loans to whites - and only FOUR to African Americans, while denying five applications. FNCB Bank in Pennsylvania in 2022 made 247 HMDA-reported loans to whites - and only ONE to an African Americans, while denying three applications. A referral should be made to the DOJ for fair lending violations."
At that time, the FDIC wrote: "Matthew Lee, Esquire Executive Director Inner City Press/Fair Finance Watch P.O. Box 20047 New York, New York 10017 Dear Mr. Lee: We received your e-mail dated November 10, 2023, regarding the application for Peoples Security Bank and Trust Company to merge with FNCB Bank. We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2(c) and 303.2(l), and we consider it a protest... Any future comments should be sent to the applicant and to this office."
The bank's outside counsel Troutman Pepper responded. But now in July 2024: "Dear Mr. Lee: We are writing to inform you that the FDIC approved Peoples Security Bank and Trust Company’s application to merge with FNCB Bank. As part of the application review process, we investigated the issues you raised in your e-mail dated November 10, 2023, and after conducting our own analysis, the FDIC approved the application with conditions... In the course of reviewing public input on the application, the FDIC received an adverse comment from a protester that was considered a CRA protest. The CRA protest was critical of Peoples Security Bank and Trust Company’s and FNCB Bank’s home mortgage lending efforts to Black applicants in Pennsylvania and asserted that the lack of lending was discriminatory and should be referred to the Department of Justice... After a careful review of the concerns, the FDIC decided to approve the application with the following condition. This condition will help ensure Peoples Security Bank and Trust Company meets the home mortgage lending needs of the Black population in its assessment areas. Within 30 days of consummation, adopt a Fair Lending Action Plan deemed acceptable by the FDIC to address low levels of home mortgage applications from, and lending to, Black applicants and borrowers, and in majority-minority areas, and provide the New York Regional Office with quarterly, written updates on its progress under the plan."
Watch this site.
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
