First National Bank of Pennsylvania to Pay $13.5 Million Settlement for Lending Discrimination

The U.S. Department of Justice has announced that First National Bank of Pennsylvania has agreed to pay $13.5 million to resolve allegations of lending discrimination. The bank was accused of redlining predominantly Black and Hispanic neighborhoods in North Carolina.

According to the complaint filed by the Justice Department, First National Bank failed to provide mortgage lending services to neighborhoods in Charlotte and Winston-Salem from 2017 to 2021. Furthermore, it allegedly discouraged individuals in these communities from pursuing home loans.

The bank has not yet provided a comment regarding the settlement.

This news has been jointly announced by the Justice Department and the State of North Carolina. They have proposed two consent orders, which are subject to court approval. If approved, these orders will require First National Bank to invest the $13.5 million to increase credit opportunities for communities of color in Charlotte and Winston-Salem.

Additionally, as part of the settlement agreement, First National Bank has agreed to hire independent consultants to improve its fair lending program and better meet the mortgage credit needs of these communities.