Trustmark Corporation (NASDAQ: TRMK) – Trustmark pays $ 5 million to settle federal mortgage discrimination charges
National Bank Trustmark, a subsidiary of Trustmark Corp. (NASDAQ: TRMK), agreed to a $ 5 million settlement with three federal regulators – the Consumer Financial Protection Bureau (CFPB), Department of Justice (DOJ) and the Office of the Comptroller of the Currency (OCC) – which will solve the fees the bank discriminated against in its mortgages in predominantly black and Hispanic neighborhoods in the Memphis metropolitan area.
What happened: Trustmark is a national bank headquartered in Jackson, Mississippi, with 196 branches in five southern states. It operates 22 branches in the Memphis metro area.
The charges against the Trustmark case stem from an OCC review that identified a potential red line. failed to monitor its fair lending compliance and actively discouraged community residents from applying for mortgages.
Trustmark’s actions are said to have taken place between 2014 and 2018.
Regulators said Trustmark violated the Fair Housing Act; the Equal Credit Opportunities Act and its implementing regulations, Regulation B; and the Consumer Financial Protection Act 2010.
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What happened next : Trustmark has agreed to pay a civil fine totaling $ 5 million, of which $ 4 million will satisfy the OCC’s civil fine order and the remaining $ 1 million will be paid to CFPB. Trustmark was also asked to invest $ 3.85 million over five years in a loan grant fund to increase mortgage lending opportunities for Memphis residents in predominantly black and Hispanic census tracts while allocating $ 200,000. per year over five years to advertising, community outreach, and credit and financial education services.
An additional $ 400,000 will be spent by Trustmark over the next five years on its community development partnerships to support services related to credit, financial education, home ownership and prevention. foreclosures that benefit residents of the Memphis communities from which the complaints originate, and it will open a mortgage loan production office in a predominantly black and Hispanic neighborhood of Memphis.
Duane A. Dewey, The chairman and CEO of Trustmark said the bank accepted the settlement “to avoid the distraction of protracted litigation and because we share the common goals of removing barriers to home financing and exploring opportunities. innovative ways to help residents of underserved areas realize the dream of homeownership. “
Photo: Toml1959 / Flickr Creative Commons.
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