First United Bank of Texas

Another Lesson in Fair Lending: First United Bank of Texas

Background The First United Bank of Texas (FUB) is a $1.2 billion FDIC regulated subsidiary of Plains Bancorp operating in western Texas (Dimmitt, TX). The FDIC/DOJ investigations found the Bank charged Hispanic applicants 205 basis points (BPs) more than non-Hispanic applicants for unsecured consumer loans. After performing a regression analysis, the basis point differential between […]

Ally Bank Logo

Ally Financial Fair Lending Consent Order

By now most compliance officers have heard about the consent order between Ally Bank, the CFPB and DOJ.  In short, Ally agreed to pay a total of $98 million in fines ($18 million) and restitution ($80 million) in a disparate impact settlement of an indirect auto lending case.  While several law firms and others have […]

Ben Bernanke Weighs in on Fair Lending and Housing Discrimination

Ben Bernanke Weighs in on Housing Discrimination Yesterday Federal Reserve Board Chairman Ben Bernanke gave a speech at the Operation HOPE Global Financial Dignity Summit in Atlanta.  Bernanke’s remarks were among the most forceful comments about housing discrimination and fair lending that I can remember a Fed chairman making in my more than 20 years […]