ONB Accused of Discriminatory Lending
A federal fair lending complaint has been filed against an Evansville-based bank. Indiana Public Broadcasting’s Jill Sheridan reports on the allegations that Old National is engaged in discriminatory practices.
Filed by the Fair Housing Center of Central Indiana, FHCCI, the complaint says in recent years the bank gave far fewer loans to black households than white households. Executive Director Amy Nelson says the bank has also closed branches in historically Black neighborhoods.
"For whatever reason, Old National Bank has not done its due dilligence in making sure that it is compliant on fair lending laws and is reaching all home seekers."
The investigation finds Old National made more than 2,250 mortgage loans over a two year period with only 37 going to Black borrowers. Those numbers are much lower than similar lenders.
FHCCI conducted fair housing tests that found less favorable outcomes for Black testers.
Old National is currently in the process of acquiring a banking group from Michigan. The FHCCI has asked the Federal Reserve to review this request before allowing the merger.
ONB Response: In a statement, Old National “strongly and categorically” denied the claims made by the Fair Housing Center. Spokeswoman Kathy Schoettlin said the Evansville-based bank is “committed to engaging in fair and equal lending practices.”
Old National is a financial supporter of WNIN.