Warren Traiger Quoted in American Banker Article, "Branch Closings Could Increase Exposure in Discrimination Claims"Warren W. Traiger
Warren Traiger was quoted in Jackie Stewart's American Banker article, "Branch Closings Could Increase Exposure in Discrimination Claims," on September 14, 2015.
Regulators are actively pursuing discrimination claims against lenders, said Warren Traiger, a lawyer at Buckley Sandler. Banking regulators are making "a lot of referrals" to the Justice Department, especially tied to redlining. In cases involving redlining claims, he said that allegations are often made that an insufficient number of branches exist in minority neighborhoods.
Regulators can use branch placement to support redlining claims, comparing the number of locations to the amount of lending activity in an area, industry experts said. Scores for the Community Reinvestment Act can also be negative affected by closing branches in low- and moderate-income neighborhoods.
"If, in the regulators' minds, the data show insufficient loan origination activity in minority areas, then they will start to scratch the surface and ask why," Traiger said. "The bank hopes that market and business factors will explain any alleged deficiency, but sometimes the regulator believes the answer is a lack of a branch or other presence in that area … or insufficient marketing or outreach."
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