A coalition of community groups led by approved HUD Agency HPP CARES has launched a formal complaint to the United States Department of Housing and Urban Development accusing a major banking institution for violating the Fair Housing Act.
Joined by the National Coalition for Equity (NCFE) in addition to a bevy of individual aggrieved Blacks, HPP CARES filed the complaint against CIT Group and its CIT Bank, N.A. subsidiaries, as the successor to OneWest Bank, stipulating they violated and continues to violate Section 3605 of the Fair Housing Act (“FHA”).
According to the complaint CIT Bank has been disingenuous with HPP CARES Home Buyer Program that benefits Black first time qualified home borrowers seeking to finance residential real estate-related transactions; home purchase, home improvement and home refinance.
CIT Bank is authorized to offer loans or other financial assistance in the form of discounts and subsidies under the Affordable Home Mortgage Program by the way of closing costs assistance, down payment assistance, interest rate reduction, or mortgage insurance premium reduction capped at ($25,000) per loan and limited loans for borrowers primary residence which are to be secured by the qualified applicant through the CIT Bank’s Community Reinvestment Assessment Area.
However, CIT Bank blatantly discriminates against Black prequalified loan candidates and their families, preventing from borrowing money.
“Due to the on-going policies, processes, and startling practices of Discouragement this is clearly a case of systemic discrimination set in place to prevent Blacks and people of color from obtaining loan assistance,” said Katherine Peoples, Founder of HPP CARES.
The HPP CARES Homebuyer Program prides itself on educating borrowers and insuring that they are adequately reviewed to qualifying for mortgages.
“We have observed from our very program a pattern of troubling Carte Blanche denials of all prequalified Blacks applicants who have been denied without adequate review by CIT Bank and they were not provided adverse action notices which is required by law within 10-days from the denial process,” Peoples continued.
“The actions of CIT Bank against Black clients who were prequalified and prepared to submit their applications had a negative, impact on our agency’s (HPP CARES) reputation and cast doubt about the validity of our first-time homebuyers program,” Peoples added.
“CIT Bank has a legal obligation under Community Reinvestment Act to meet the banking needs of the communities they serve, by making credit equally available to all qualified applicants,” Peoples elaborated.
HPP CARES has proactively tried to engage with CIT Bank Executive Leadership on countless occasions, but to no avail.
CIT BANK has been under scrutiny by HUD since 2017, including redlining and violations of 3605 of the Fair Housing Act.
Inglewood Today obtained data that CIT Bank was delinquent in providing home loans in California and only 50 of those individuals were Black.
“This sort of determent against Black applicants experience has far-reaching consequences. The largest share of wealth and financial stability are inextricably linked to ownership and legacy,” said Peoples
HPP CARES organizational mission is devoted to improving access to credit for the historically under-served, low-and moderate-income individuals and communities of color through prequalified programs that identify and support the engines of homeownership through financial literacy.
Joined by the National Coalition for Equity (NCFE) in addition to a bevy of individual aggrieved Blacks, HPP CARES filed the complaint against CIT Group and its CIT Bank, N.A. subsidiaries, as the successor to OneWest Bank, stipulating they violated and continues to violate Section 3605 of the Fair Housing Act (“FHA”).
According to the complaint CIT Bank has been disingenuous with HPP CARES Home Buyer Program that benefits Black first time qualified home borrowers seeking to finance residential real estate-related transactions; home purchase, home improvement and home refinance.
CIT Bank is authorized to offer loans or other financial assistance in the form of discounts and subsidies under the Affordable Home Mortgage Program by the way of closing costs assistance, down payment assistance, interest rate reduction, or mortgage insurance premium reduction capped at ($25,000) per loan and limited loans for borrowers primary residence which are to be secured by the qualified applicant through the CIT Bank’s Community Reinvestment Assessment Area.
However, CIT Bank blatantly discriminates against Black prequalified loan candidates and their families, preventing from borrowing money.
“Due to the on-going policies, processes, and startling practices of Discouragement this is clearly a case of systemic discrimination set in place to prevent Blacks and people of color from obtaining loan assistance,” said Katherine Peoples, Founder of HPP CARES.
The HPP CARES Homebuyer Program prides itself on educating borrowers and insuring that they are adequately reviewed to qualifying for mortgages.
“We have observed from our very program a pattern of troubling Carte Blanche denials of all prequalified Blacks applicants who have been denied without adequate review by CIT Bank and they were not provided adverse action notices which is required by law within 10-days from the denial process,” Peoples continued.
“The actions of CIT Bank against Black clients who were prequalified and prepared to submit their applications had a negative, impact on our agency’s (HPP CARES) reputation and cast doubt about the validity of our first-time homebuyers program,” Peoples added.
“CIT Bank has a legal obligation under Community Reinvestment Act to meet the banking needs of the communities they serve, by making credit equally available to all qualified applicants,” Peoples elaborated.
HPP CARES has proactively tried to engage with CIT Bank Executive Leadership on countless occasions, but to no avail.
CIT BANK has been under scrutiny by HUD since 2017, including redlining and violations of 3605 of the Fair Housing Act.
Inglewood Today obtained data that CIT Bank was delinquent in providing home loans in California and only 50 of those individuals were Black.
“This sort of determent against Black applicants experience has far-reaching consequences. The largest share of wealth and financial stability are inextricably linked to ownership and legacy,” said Peoples
HPP CARES organizational mission is devoted to improving access to credit for the historically under-served, low-and moderate-income individuals and communities of color through prequalified programs that identify and support the engines of homeownership through financial literacy.
