By Matthew Russell Lee, Patreon Maxwell Book
SOUTH BRONX, Oct 28 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much.
Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank.
Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:
"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.
Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.
Summit Community Bank is also of concern. In West Virginia in 2022 it made 403 mortgage loans to whites, and only EIGHT to African Americans. Meanwhile it denied 3 applications from African Americans, and only 97 from whites (compared to 403 originations). This is disparate, and more disparate both than the aggregate in West Virginia.
See also, as to proposed acquirer Burke & Herbert, this "civil action seeking monetary damages, restitution and declaratory relief from Defendant Burke & Herbert Bank & Trust Company (“Burke & Herbert”), arising from the unfair and unconscionable assessment and collection of “overdraft fees” (“OD Fees”) on accounts that were never actually overdrawn. 2. This practice breaches contract promises made in Burke & Herbert’s adhesion contracts. 3. In plain, clear, and simple language, the checking account contract documents discussing OD Fees promise that Burke & Herbert will only charge OD Fees or Non-Sufficient Funds Fees (“NSF Fees”) on transactions where there are insufficient funds to cover them. 4. As happened to Plaintiff, however, Burke & Herbert charges OD Fees even when there are sufficient funds to cover a debit card transaction," citation, etc.
Earlier in October, after a similar challenge by Fair Finance Watch on data and complaints not even as bad, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.
If the regulators at the FDIC means what they claim, including in the new CRA regulation, this application should be denied. 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.
Feedback: Editorial [at] innercitypress.com
