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Hudson City Bancorp to Pay $33M on Lending Practices

Jaclyn Jaeger | September 24, 2015

Hudson City Savings Bank today reached a $33 million settlement with the Department of Justice and the Consumer Financial Protection Bureau to resolve allegations that it engaged in a pattern of “redlining” predominantly African American and Hispanic neighborhoods in its residential mortgage lending practices. 

“Redlining” is the discriminatory practice by banks or other financial institutions to deny or avoid providing credit services to a consumer because of the racial demographics of the neighborhood in which the consumer lives. “This resolution represents the Justice Department’s largest residential mortgage redlining settlement in its history,” the Justice Department said.

Under the terms of the proposed settlement, Hudson City will invest $25 million in a loan subsidy fund to increase the amount of credit the bank extends to...

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