Washington Trust “vehemently” denied the allegations made by the Justice Department last fall but agreed to invest and spend at least $9 million to improve access to mortgage credit for minority communities in Rhode Island.
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The nation’s oldest community bank has launched a Spanish-language version of its website to provide a better experience for Hispanic and Latino customers in New England after resolving redlining charges brought by federal regulators last year.
Washington Trust, based in Westerly, R.I., agreed in September to invest and spend at least $9 million to improve access to mortgage credit for minority communities in Rhode Island to resolve a lawsuit filed by the U.S. Department of Justice. Redline claims.
Washington Trust has “vehemently” denied the Justice Department’s allegations last fall, which included an analysis of records showing that just 2% of the mortgages the bank originated from 2016 to 2021 were in majority Black and Hispanic areas. .
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Washington Trust on Thursday announced the launch of a Spanish-language version of its website that includes a dedicated mortgage landing page as it continues to defend its past record.
Edward O. “Ed” Handy III
“Washington Trust is committed to inclusion and ensuring that all community members have access to financial tools and information to help them,” Edward O. “Ned” Handy III, chairman and CEO of Washington Trust, said in a statement. Enabling Economic Empowerment “While we have used Spanish-language materials and advertising for many years, the Spanish-language version of our website ensures that members of the Hispanic/Latino community can more easily interact with us online. “
Washington Trust said it worked with Envision Technology Advisors and Be Moore Interpreting “to ensure that website content is translated proficiently and efficiently into Spanish.”
Depending on the borrower, lenders may need to do more than market to them in the language they are most familiar with. To ensure borrowers understand the terms of the loan they are getting, lenders may also need to provide loan disclosures and transaction documents in that language.
Last year, the Consumer Financial Protection Bureau and the Justice Department sued a Texas developer and lender, accusing it of marketing predatory loans in Spanish but closing the loans in English.
Washington Trust’s Spanish-language mortgage landing page invites users to connect with a mortgage expert who will help them “get the answers they need every step of the way so you can get the best loan possible.” The site also offers Spanish language information disclosure.
Washington Trust did not immediately respond to a request for comment on other steps it is taking to help Spanish-speaking borrowers apply for loans and understand the terms of the loans they receive.
For example, Guaranteed Rate’s Spanish Access program includes loan disclosures describing loan terms and fees, allowing the company to guide borrowers from application to closing entirely in Spanish.
Mortgage technology provider Maxwell helps small and mid-sized mortgage lenders provide similar services. Maxwell’s Spanish-language point-of-sale platform allows borrowers to complete their mortgage application in Spanish or English, with the ability to switch back and forth between languages at any time.
In a settlement with the Justice Department last year, Washington Trust agreed to invest at least $7 million in a loan subsidy fund to increase access to mortgages for residents of predominantly black and Hispanic communities in Rhode Island, and to spend an additional $2 million For community partnerships, advertising and outreach.
Washington Trust also agreed to open two new branches in predominantly black and Hispanic communities in Rhode Island, ensure at least two mortgage loan officers are dedicated to serving those communities, and hire a community lending director to oversee community lending Continuous development of color.
The Justice Department’s ongoing “anti-redlining program” has resulted in settlements with more than a dozen lenders totaling more than $122 million to date, including:
- First National Bank of Pennsylvania agreed in February to invest at least $11.75 million in a loan subsidy fund to provide better mortgages to residents of predominantly black and Hispanic communities in Charlotte and Winston-Salem, North Carolina. Loans and home improvement loan services, marketplace.
- Jacksonville, Florida-based Ameris Bank agreed to a $9 million settlement in October 2023 aimed at improving access to credit for Black and Hispanic communities.
- Newark, Ohio-based Park National Bank agreed in February 2023 to invest at least $7.75 million in a loan subsidy fund to increase access to credit for Black and Hispanic communities in the Columbus area.
- In January 2023, in the largest redlining settlement reached by the Justice Department, City National Bank agreed to invest at least $31 million in predominantly Black and Hispanic communities in Los Angeles County.
- In September 2022, Lakeland Bank agreed to invest at least $12 million in financial services for residents of black and Hispanic communities in the Newark, New Jersey, metropolitan area, including communities in Essex, Somerset and Union counties. Loan subsidy fund.
- Trident Mortgage, a Berkshire Hathaway company, agreed in July 2022 to invest more than $20 million to create homeownership opportunities in communities of color surrounding Philadelphia.
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