Mortgage Daily

Published On: January 16, 2017

The federal government has filed a lawsuit against a bank out of Minnesota alleging housing discrimination against minorities.

According to a notice from the Department of Justice’s Office of Public Affairs, a action
was filed Friday against KleinBank.

KleinBank allegedly denied residents more in Minneapolis-St. Paul neighborhoods where a majority of residents were minorities.

The complaint, filed in U.S. District Court for the District of Minnesota,
alleges that from 2010 until 2015, the bank provided more service to customers in predominantly white neighborhoods.

According to the Justice Department, the Chaska, Minnesota, bank’s peers generated five times more loan applications in minority neighborhoods.

KleinBank’s actions allegedly violated  the Fair Housing Act and Equal Credit Opportunity Act.

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