Join us on LinkedIn Follow us on Twitter Like us on Facebook
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

Lawsuit alleges racial discrimination by Wintrust Bank

Add This Email A Friend Printer Friendly Version
0 comments
Case Law
Monday, June 20, 2022
A complaint filed in Chicago’s federal district court for the Northern District of Illinois alleges Wintrust Bank denied black applicants at a higher rate than white applicants; and, when black applicants were approved, it was at terms more burdensome than those for white applicants.

The named plaintiff of this case, Kathleen Bankhead, is described in the complaint as “a well-qualified African American home borrower and well-respected member of her community.”

The complaint asserts Wintrust offered Bankhead a mortgage to purchase a residential property that was at “a higher interest rate with less favorable terms and conditions” than offered to white applicants. According to Bankhead, Wintrust offered her less than ideal conditions for her mortgage because of her race and because she was purchasing a property located in an area that was majority-minority.

Wintrust offered Bankhead a locked rate of 3.25 percent which, according to the complaint, was a higher rate than the rates offered to white homebuyers. Bankhead also claims that Wintrust refused to grant her a “free float down” to allow her rates to decrease should market conditions permit, without having to pay a fee. The complaint also alleges Wintrust demanded several hundred dollars in fees to extend the rate lock.

The complaint seeks to obtain class certification, claiming that Bankhead’s experience with Wintrust is representative of the bank’s alleged treatment of many of black homebuyers who applied for home mortgage loans through Wintrust.

According to the complaint, Wintrust approved 59.5 percent of black mortgage applicants, compared to 73 percent of white applicants. The complaint also alleges that discrimination is evidenced by the interest rates assessed by Wintrust, where black borrowers saw an average interest rate of 3.31 percent compared to 3.21 percent for white borrowers.

The lawsuit asks the federal court to award compensatory and punitive damages, as well as injunctive relief in the form of a court order requiring Wintrust to implement new “policies and procedures to avoid racially discriminatory approvals, rejections, interest rates, fees, costs, credits, terms, conditions and other policies.”

Today's other top stories
SCOTUS fires warning shot at overreaching agencies
House tackles ‘tech bro’ culture in fintechs
CFPB prepares to take on relationship banking and customer service
ALI revises draft of Restatement of Consumer Contracts
First Guaranty Mortgage Corp. files for bankruptcy


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
CAPTCHA Validation
CAPTCHA
Code:
: 
: 
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 581 times.

Monthly Newsletter

Dodd Frank Update July 2022

Cover Story:

LexisNexis looks at the true cost of fraud in mortgage origination


Tweets from @DoddFrankUpdate/lists/industry-news
News by Topic   News by Edition   News by Agency   News by Industry   Special Reports   Webinars
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update April 2022
Dodd Frank Update May 2022
Dodd Frank Update June 2022
Dodd Frank Update July 2022
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
Forbearance Has Ended, Now What?
2022 State of the Industry
Mortgage Technology
Real Estate Compliance Outlook
Optimizing AI and Blockchain for the Future
Archives
 
Utilizing Tech for RESPA Compliance
Collaborating on eClosings
Economic Forecast Series
Industry and Regulatory Outlook
Archives

Library   About   Subscribe   Store
The Dodd-Frank Act Position Papers
Dodd-Frank Summary & History Legislation
Court Actions Regulations
Enforcement Documents Reports, Studies and Surveys
Guidance Documents Federal Register Notices
White Papers  
 
Dodd Frank Update
Contact / Editors
Advertise
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
NS3 The Summit
Other Newsletters
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2022 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
INDUSTRY
SPECIAL REPORTS
WEBINARS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
Best Practices
Forbearance
2022 State of the Industry
2021 Mortgage Technology
Real Estate Compliance Outlook
Archives
CFPB Update
Move to ANSI Standards
Tech for RESPA Compliance
Collaborating on eClosings
2022 Economic Forecast Series
Industry and Regulatory Outlook
Complying with the New CFPB
Evolving Lender Relationships
RESPA Section 9
Getting to Know Your Regulators
Webinar Archives
Executive Interview Series
eClosing Solutions Showcase
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Social Media
Are You An Expert?
Subscriber Agreement