Over the last several years, I have read stories, both historical and contemporary, of how discriminatory lending practices have adversely affected minority people. I have read of how people, unable to get a fair shake, end up paying more for the same loans. In some cases, people unable to get conventional loan servicing, have fallen victim to predatory lending practices that have cost them homes, family farms and businesses. These people were denied an access to capital that similarly-situated (or, in some cases, worse-off) white customers did not face.

So, it heartens me to hear when a lender is held accountable for discriminating in how they approve loans. Southstar Lending, LLC has negotiated a $500,000 settlement with the U.S. Department of Housing and Urban Development over its discrimination against African American and Hispanic borrowers.

According to a March 2006 complaint filed by the National Community Reinvestment Coalition (NCRC), Southstar refused to make loans on row houses in Baltimore, Maryland valued at less than $100,000. An overwhelming majority (two-thirds) of Baltimore’s row houses are owned by African Americans and Hispanics.

NCRC will use the settlement money to fund initiatives that battle housing discrimination.

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