HUD and First Bank of Kansas City reach a 2.8 million settlement

March 01, 2016
The U.S. Department of Housing and Urban Development (HUD) announced today an agreement with First Federal Bank of Kansas City to resolve allegations of ‘redlining’ against African American mortgage applicants.
     HUD and two fair housing organizations claimed the lender’s designated service area effectively excluded African American neighborhoods, limiting residential mortgage lending to persons based upon their race.
     Read the HUD-mediated agreement announced today. The Fair Housing Actmakes it unlawful for any person or other entity whose business includes residential real estate-related transactions to discriminate against any person because of race. “Homeownership should never be affected by the color of a person’s skin. This agreement helps to ensure that all qualified families in the Kansas City area get a fair shot at owning their own home, regardless of race,” said HUD Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez.
     “HUD will continue to work with banks across the nation to ensure they follow the Fair Housing Act.”