| In CRA Test
VeraBank Bid For Panola National Bank Is
Challenged to OCC and Federal Reserve
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
FEDERAL COURT / S
Bronx, Jan 31 – Whether or not
the U.S. Community
Reinvestment Act will be again
enforced until the new
Administration and its
regulators is an open
questions.
On the
10th day of the new
Administration, Fair Finance
Watch with Inner City Press on
the FOIA filed comments with
the post-Brooks Office of the
Comptroller of the Currency
and with the Federal Reserve
on a proposal by VeraBank of
Texas to acquire Panola
National Bank.
The issues
include that the applicant
VeraBank in Texas in 2019 made
465 home loans to whites and
only NINE to African
Americans. Its denial rate for
African Americans was more
than FOUR TIMES than for
whites.
That
is to say, VeraBank in Texas
in 2019 made 3.7 loans to
whites for each denial to
whites. It made less than one
- 0.81 - loans to African
Americans for every denial to
African Americans.
There is also this: "'In the
second round we have seen
about half the number of
requests that we did in the
first round,' said Brad
Tidwell, president and CEO of
Henderson-based VeraBank."
To the
OCC, the rubber-stamping of
mergers by redliners under
Brian Brooks and Joseph Otting
has been explicitly noted. To
the Fed, its logic in
extending a recent comment
period due to Coronavirus must
apply to this and other
applications. These are litmus
tests. Watch this site.
Meanwhile
in Federal court, PNC Bank and
its Midland Loan Services have
been sued for usury, predatory
lending and civil conspiracy,
under New York and Federal
law.
The
complaint docketed on December
29, 2020 in the U.S. District
Court for the Southern
District of New York, which
Inner City Press covers,
describes PNC's lending on a
number of homes and allegedly
racking up $250 charges.
It questions the
reporting on line 205 of the
HUD statement. When the
plaintiff questioned it, he
was called an
"assh*ole."
The case is
filed while PNC seeks to buy
the US retail banking business
of BBVA for $16 billion, an
application to the Federal
Reserve Board and other
regulators which is subject to
the Community Reinvestment
Act.
The case is
Barli v. PNC Bank, NA et al.,
20-cv-11027 (Castel)
***
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