• FNB Corporation, a Pennsylvania-based bank, is being sued by the Department of Justice (DOJ) for alleged racial discrimination in its mortgage lending practices in North Carolina.
• The issues date back to FNB’s 2017 acquisition of Yadkin Bank in an all-stock deal reportedly worth $1.8 billion.
• The DOJ alleges that post-acquisition, FNB engaged in a practice known as “redlining”. This supposedly involved drawing a “red line” around neighborhoods with majority-Black and Hispanic populations and dodging mortgage lending in those areas.
• According to the lawsuit, FNB intentionally avoided placing branches, providing services or marketing in such majority-minority neighborhoods, resulting in fewer mortgages for these underrepresented communities.
• The fines and remedies linked to these discrimination charges could substantially impact FNB’s financial standing.
The Comedic Corruption Controversy of FNB
Banking Blooper or Biased Business?
Is it Redlining or Just Colour Blind?
In the world of real estate, there’s nothing funnier than a multi-billion dollar bank being accused of acting like a snobby adolescent refusing to associate with the “uncool” kids. By uncool, we mean Black and Hispanic communities, and by snobby adolescent, we mean FNB Corporation. Apparently, when FNB pocketed Yadkin Bank for a cool $1.8 billion in 2017, they may have also got themselves a coupon for a DOJ lawsuit. Talk about buyer’s remorse!
According to our friendly neighbours at the Department of Justice, FNB may have been engaging in a Banksy-style act of boundary drawing, ‘redlining’ around minority-majority neighbourhoods. They allegedly prevented their mortgage magic from spreading into those areas. You know, like a fairy godmother, but only granting wishes in select areas.
Now, FNB is not new on the block. But with these allegations, they seem to be modelling the “Avoid the Other Side of The Tracks” strategy right out of the Monopoly rulebook. Let’s just say, Park Place and Boardwalk don’t look quite as inviting with this scandalous cloud hanging over them.
Consequences are looming and the numbers crunched could see a significant shake-up to FNB’s piggybank. But hey, with several billion dollars at their disposal, perhaps they can buy a “Get Out of Jail Free” card… or maybe they misjudged the rules of real-life monopoly?
Hot take: In the uproarious circus of banking shenanigans, FNB is making a valiant attempt to secure the spotlight. With a DOJ lawsuit looming and residents raising eyebrows, it’s safe to say it’s not quite the standing ovation they might’ve been hoping for. So, here’s to hoping FNB finds its moral compass and starts distributing its fairy dust evenly across the lands—or at least learns to play by the rules before they land on “Go to Jail”… this is one Monopoly game where there’s no fun in cheating!
Original article: https://www.inman.com/2024/02/06/fnb-of-pennsylvania-to-pay-13-5m-to-settle-redlining-allegations/
