The Fair Housing Center of Central Indiana (FHCCI) and Old National Bank have reached an agreement to expand lending opportunities in majority-Black census tracts and for black borrowers in Marion County, Indiana in settlement of a redlining lawsuit filed recently in the U.S. District Court for the Southern District of Indiana. Relman Colfax represented the FHCCI in the matter.
Under the agreement, Old National commits to originating at least $20 million in loans in majority-Black census tracts in Marion County, funding loan subsidies to support down payment assistance, closing costs, insurance coverage, and lowered interest rates, and funding grants to community-based groups in majority-Black neighborhoods.
The agreement settles a lawsuit Relman Colfax filed on behalf of the FHCCI in October; it will provide significant support for Black borrowers and to neighborhoods and communities in Indianapolis over a three-year term, including:
- Branches: Two new full-service branches to open in majority-Black census tracts in Indianapolis. The locations will initially open as loan production offices and will be converted to full-service branches following regulatory approval.
- Staffing: ONB will provide two mortgage loan officers and one community outreach specialist to serve majority-Black neighborhoods in Indianapolis.
- Lending:
- ONB will originate $20 million in single family purchase loans in majority-Black areas in Indianapolis over three years through the development of a Special Purpose Credit Program that is intended to help Black applicants and residents of majority-Black census tracts qualify for loans.
- ONB will provide $1.1 million in loan subsidies, up to $10,000 per transaction, to support down payment assistance, insurance premiums, and closing cost assistance in majority-Black census tracts.
- ONB will expand and revise its Home Manager Mortgage product, which permits loans with up to 97% LTV with no insurance requirement. and has revised program guidelines to expand eligibility.
- Affordable Multifamily Housing: ONB will provide at least $7.5 million in loans to support affordable multifamily housing developments in Indianapolis.
- Grants: ONB will provide $1.3 million in grants to local CDCs and community organizations based in or serving majority-Black neighborhoods in Indianapolis.
- Fair Lending Education: ONB will make a $350,000 donation to the FHCCI to support fair lending education opportunities in Indianapolis.
- Redlining Assessment: ONB will hire an independent third-party consultant to conduct a comprehensive redlining assessment of Old National’s operations in key markets to include Ft. Wayne and Evansville, IN; Louisville, KY; and Minneapolis, MN.
- Training: ONB will conduct mandatory fair lending training for all relevant employees bank-wide.
- Marketing: ONB will spend at least $300,000 over the term of the agreement for marketing to majority-Black neighborhoods in Indianapolis.
The settlement agreement is here, and a press release from FHCCI is here.
The Relman Colfax litigation team includes John Relman, Glenn Schlactus, Sara Pratt, and Alexa Milton, with paralegal assistance from Sonali Durham and Mariana Boully-Perez. Our co-counsel in Indianapolis were Russell Cate and Matthew Keyes of RileyCate, LLC.