U.S. Department
of Justice
United States v. Patriot Bank (W.D. Tenn.)
On January 30, 2024, the court entered a consent order in United States v. Patriot Bank (W.D. Tenn.). The complaint, which was filed January 17, 2024, alleged violations of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) specifically that, from 2015 through 2020, Patriot Bank engaged in unlawful redlining in its self-designated service area in Memphis, Tennessee and discriminated on the basis of race, color, or national origin. The consent order requires Patriot to invest at least $1.3 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black and Hispanic neighborhoods in Memphis. Additionally, in those same neighborhoods, Patriot will spend at least $375,000 for advertising, outreach, and consumer financial education and counseling; spend $225,000 to develop community partnerships to provide services that increase access to residential mortgage credit; employ two loan officers dedicated to serving those communities of color in Memphis and a Director of Community Lending who will oversee the continued development of lending in those communities; and continually assess the credit needs of the communities.