First Federal Bank of Kansas City agrees to payments for alleged discriminatory practices

Kansas City, KS: First Federal Bank of Kansas City has come to an agreement with Department of Housing and Urban Development (HUD) regarding allegations of redlining against black mortgage applicants.


First Federal has “agreed to provide $75,000 in discounts or subsidies on home purchase loans on owner-occupied properties in majority African American census tracts in the Kansas City metropolitan area over a three year period. In addition, the bank agreed to originate $2.5 million in mortgage loans in majority African American neighborhoods over a three year period,” according to the release from HUD.


Further measures involve $105,000 for rehabilitation of blighted homes; $15,000 per year for three years for affirmative marketing and outreach to black communities in the metropolitan area; $30,000 for financial education targeting black communities; and $50,000 to be disbursed those initially lodging the complaint: the nonprofit organizations Metropolitan St. Louis Equal Housing and Opportunity Council and Legal Aid of Western Missouri.




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