The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Trustmark paying $5M to resolve Fair Housing Act claims

Trustmark in Jackson, Miss., will pay a $5 million civil money penalty tied to consent orders with regulators. 


The $17.1 billion-asset company said in a press release Friday that its bank entered into an order with the Office of the Comptroller of the Currency and a separate order with the Justice Department and the Consumer Financial Protection Bureau. 

The orders address allegations that Trustmark violated the Fair Housing Act, the Equal Credit Opportunity Act, and the Consumer Financial Protection Act within the Memphis, Tenn., market. 

Trustmark agreed to pay $4 million to satisfy a civil money penalty in the OCC’s consent order; another $1 million will be paid to the CFPB. 

The company is also required to implement a fair lending plan and invest nearly $3.9 million over five years in a loan subsidy fund to increase credit opportunities to residents of majority-Black and Hispanic neighborhoods. 

Trustmark also agreed to devote at least $400,000 over five years to community development partnership contributions and $200,000 annually over five years to advertising, community outreach and credit repair and education in the Memphis area. 

The company agreed to open a mortgage loan production office to serve residents in a majority-Black and Hispanic neighborhood in Memphis. 

The orders must be approved by the U.S. District Court for the Western District of Tennessee.

Leave a Reply

Your email address will not be published. Required fields are marked *