Old National Bank will increase mortgage lending to Black borrowers and majority-Black neighborhoods as part of a partnership with Fair Housing Center of Central Indiana.
The initiative settles a lawsuit the housing center filed against Old National Bank in October, alleging the bank discriminated against Black borrowers.
The initiative will last three years and includes the following:
- Two new branches will open in majority-Black census tracts in Indianapolis. The locations will initially open as loan production offices and will be converted to full-service branches upon regulatory approval in two years.
- Old National Bank will provide two mortgage loan officers and one community outreach specialist to serve majority-Black areas in Indianapolis.
- The bank will originate at least $20 million in single-family purchase loans in majority-Black areas in Indianapolis over three years through a program designed to help Black applicants qualify for loans. The bank will also provide $1.1 million in loan subsidies (up to $10,000 per transaction) to support down payment assistance, mortgage insurance premiums, premiums and closing cost assistance in majority-Black census tracts.
- Other initiatives include supporting affordable housing, giving grants to community development corporations and hiring a third-party consultant to conduct a redlining assessment of the bank’s operations in key markets.
“The agreement announced today will counteract lending disparities for Black home seekers in Marion County by providing needed mortgage lending opportunities, bank branches, neighborhood stabilization grants, and fair lending education,” FHCCI Executive Director Amy Nelson said in a statement.
Old National Chairman and CEO Jim Ryan highlighted the bank’s past grants and sponsorships that have been focused on low-income neighborhoods.
“Our partnership with the FHCCI furthers this commitment by focusing attention on the banking and borrowing needs of Marion County residents in majority-minority and underserved neighborhoods,” he said in a statement.
