What Is Morris v Bank of America Settlement?
Morris v Bank of America Settlement is a legal case that resulted in a settlement between Bank of America and a group of plaintiffs who alleged that the bank had engaged in discriminatory lending practices. The case was filed in 2012 and finally settled in 2018, after years of litigation and negotiation.
The lawsuit accused Bank of America of violating the Fair Housing Act by engaging in discriminatory lending practices that disproportionately affected minority borrowers. The plaintiffs claimed that the bank had engaged in a practice known as “redlining,” which involves denying or charging higher rates for loans to borrowers based on their race or ethnicity.
The settlement reached between Bank of America and the plaintiffs included several provisions aimed at addressing the alleged discriminatory practices. Under the terms of the settlement, Bank of America agreed to provide $335 million in loan subsidies to affected borrowers, as well as invest $50 million in affordable housing initiatives and community development programs.
In addition to the financial provisions, the settlement also required Bank of America to make changes to its lending practices to ensure compliance with fair housing laws. The bank agreed to conduct regular fair lending training for its employees, maintain a fair lending monitoring program, and provide regular reports to the plaintiffs’ attorneys on its lending practices.
The settlement was hailed as a significant victory for fair housing advocates, as it not only provided monetary relief to affected borrowers but also required systemic changes within Bank of America to prevent future discriminatory practices.
Frequently Asked Questions (FAQs):
1. Who were the plaintiffs in the Morris v Bank of America Settlement?
The plaintiffs in the case were a group of borrowers who alleged that they had been subjected to discriminatory lending practices by Bank of America.
2. What is redlining?
Redlining is a discriminatory practice in which lenders deny or charge higher rates for loans to borrowers based on their race or ethnicity.
3. How much money did Bank of America provide in loan subsidies?
Bank of America agreed to provide $335 million in loan subsidies to affected borrowers as part of the settlement.
4. How much did Bank of America invest in affordable housing initiatives?
Bank of America agreed to invest $50 million in affordable housing initiatives and community development programs.
5. What changes did Bank of America agree to make to its lending practices?
Bank of America agreed to conduct fair lending training for its employees, maintain a fair lending monitoring program, and provide regular reports on its lending practices.
6. When was the settlement reached?
The settlement was reached in 2018, after several years of litigation and negotiation.
7. What law did Bank of America allegedly violate?
Bank of America was accused of violating the Fair Housing Act.
8. How did the settlement benefit the plaintiffs?
The settlement provided financial relief to affected borrowers and required changes within Bank of America to prevent future discriminatory practices.
9. What was the significance of the Morris v Bank of America Settlement?
The settlement was seen as a significant victory for fair housing advocates, as it addressed alleged discriminatory practices and required systemic changes within Bank of America.