Tentative ruling issued in NAACP suit alleging lending bias
Tuesday, February 2, 2010
Daily Journal: A California federal judge intends to throw out a claim that a major national bank discriminated against blacks applying for mortgages during the recent housing boom. The NAACP sued First Tennessee Bank for allegedly targeting black homebuyers for subprime loans and expensive adjustable-rate mortgages. Judge Andrew Guilford‘s order for summary judgment for First Tennessee awaits finalization. In his tentative order, Guilford wrote that “while the NAACP pointed to reports saying the bank’s parent company had engaged in such lending, those weren’t enough to implicate First Tennessee,” according to the Journal’s Jason Armstrong. Armstrong said other banks facing similar suits by the NAACP are in settlement talks, according to court documents. Attorney Brian Kabateck of Kabateck Brown Kellner, representing the NAACP, told the Journal the issue is the banks’ general banking practices and the injunctions are intended to make banks change those practices going forward.