Virginia bank settles lending bias suit with Howard University law professor

First Virginia Bank-Maryland recently agreed to pay a Howard University law professor more than $200,000 to settle a racial discrimination lawsuit brought against the bank two years ago after the educator alleged he was denied a loan because he is Black.

The settlement, which attorneys for professor Spencer Boyer and the Fair Housing Council of Greater Washington said was the second-largest ever in a lending discrimination case by an individual, requires the bank to pay Boyer $210,000 as well as take affirmative steps to ensure fair lending practices.

Among the steps the bank is required to take, according to the settlement, are to provide anti-discrimination training for its employees, solicit home equity loan applications from minority-owned real estate companies and brokerage firms, and retain loan records to permit monitoring and inspection by the Fair Housing Council.

The Rev. Dr. James G. Macdonell, president of the Board of Directors of the Fair Housing Council of Greater Washington, said the settlement "sends a clear message that lending discrimination will not be tolerated."

Rev. Macdonell also noted that the bank, which did not acknowledge it had discriminated against Boyer, is taking positive steps through the settlement to promote fair lending in the Washington, D.C. metropolitan area: "This bank is undertaking to face the problems we raise head-on, and has agreed to commit the resources needed to ensure that all qualified loan applicants have equal access to its loan products."

The lawsuit was brought after Boyer applied--in person--at a bank branch for a $50,000 home equity loan on his $400,000 house but was turned down. He later applied for a loan by mail from three other lenders and was approved. Ironically, one of the lenders is a subsidiary of the same holding company that owns First Virginia--Maryland.