State Farm can go into S&L business

November 13, 1998
After mollifying concerns about lending discrimination, insurance giant State Farm has secured regulators' approval to operate a federal savings and loan.
     The federal Office of Thrift Supervision approved the new charter on Thursday. Approval had been held up for a year partly because of opposition from several community groups, which voiced concern that State Farm might discriminate against low-income borrowers. The company, based in Bloomington, Ill., in the past had been accused of discriminating against inner-city homeowners in underwriting insurance policies.
     Seeking to assuage those concerns, State Farm pledged to make $195 million in loans to low- and moderate-income borrowers in the S&L's first three years of operation.