In a statement, the company said investigators 'refused to consider the fact that Fairway took more loan applications and made more loans, in terms of number of loan units, in majority-Black census tracts than any other non-bank lender with a physical presence in the Birmingham' area.
The Justice Department and Consumer Financial Protection Bureau announced last week that Fairway Independent Mortgage Corp. had agreed to pay $8 million, and a $1.9 million civil money penalty, to resolve allegations of redlining, or lending discrimination.“This is not the only bank doing this and everyone know it,” Brian K. Rice, president of the Ensley Business Alliance, wrote in a Facebook post.
It will also invest $1 million in programs to support that loan subsidy fund, and pay a $1.9 million civil penalty to the CFPB’s victims relief fund. For example, in a 2018 email chain between two loan officers in the company, one who was a top-producer in the Birmingham region referred to an applicant’s friends as “thug friends.”
In a statement, Fairway said the filing complaint “significantly mischaracterizes the matter at issue and appears to be intentionally inflammatory in nature.” The company countered that it took more loan applications and made more loans, in terms of number of loan units, in majority-Black census tracts than any other non-bank lender with a physical presence in the Birmingham metro area.
And in majority-Black areas, on average, only 37.8% of Fairway’s loans were made to applicants identified as Black, meaning most of the applicants were less likely to be Black, according to court documents.
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