The Recent Detroit Lending Discrimination Settlement


The Department of Justice announced May 5 that it had reached a settlement with Citizens Republic Bancorp Inc. and Citizens Bank of Flint, Mich., in a lawsuit alleging a pattern of practice of lending discrimination, or "redlining," in Detroit in violation of the Fair Housing Act and the Equal Credit Opportunity Act. United States v. Citizens Republic Bancorp et al., No. 11-cv-11976, settlement announced (E.D. Mich. May 5, 2011). The settlement remains subject to approval by the U.S. District Court for the Eastern District of Michigan.

The case illustrates the perpetual tension in fair lending: balancing the need to serve traditionally underserved areas with the increased underwriting standards that are being demanded by regulators and investors. As underwriting standards become more strict, as many suspect they will under the Dodd-Frank Act, this tension may become even more acute.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Written by:


BuckleySandler LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.