The Department of Housing and Urban Development said Friday that an agreement was reached between Fidelity Bank and the Fair Housing Project of North Carolina Legal Aid.
Per the agreement, North Carolina-based Fidelity Bank will earmark $1 million, split over two years, to make investments and originate community development loans in majority-minority census tracts, with 40% going toward investments that promote affordable housing. The agreement settles allegations that the lender engaged in unfair lending practices against minority applicants.
Fidelity Bank did not immediately return requests for comment.
The allegations were brought forth by the Fair Housing Project of North Carolina Legal Aid, a Raleigh-based HUD Fair Housing Initiatives agency. The allegations charged that Fidelity denied or made loans unavailable for race-related reasons.
The agreement also calls for the bank to display a HUD Fair Housing poster and non-discrimination policies in both English and Spanish at one of its Raleigh branches. The bank will also provide fair lending training to loan originators and other employees involved in processing and underwriting loans.
HUD will monitor compliance with the agreement. If the department finds that the bank has breached the agreement, it will refer the matter to the U.S. Attorney General's office.
