
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, December 11, 1994                   TAG: 9412120082
SECTION: VIRGINIA                    PAGE: A6   EDITION: METRO 
SOURCE: MIKE HUDSON
DATELINE:                                 LENGTH: Short

FEDERAL CRACKDOWN

Federal banking regulators can use banks' and S&Ls' performance in serving minority and low-income consumers in deciding whether to approve applications for mergers, branch openings or closings and other moves.

The regulators have done so in a handful of cases - none in the Roanoke Valley. They have been criticized by community activists for not doing more to act on statistics showing that banks turn down black home-loan applicants more frequently than whites.

The U.S. Justice Department, meanwhile, has begun cracking down on what it sees as discriminatory practices by some banks and savings and loans. Recent cases include:

Charges this summer that metro Washington's largest S&L discriminated against minorities by failing to open offices or advertise in black neighborhoods. Chevy Chase Federal Savings Bank agreed to invest $11 million to create new loan programs and open offices in black neighborhoods.

A $1 million settlement in 1992 by Educator Federal Savings and Loan in Atlanta. The S&L, which was purchased by First Union Corp. after the government sued, agreed to pay reparations to 48 black families. Investigators said they had been denied loans because of their race.

An investigation of the mortgage arm of New England's second-largest bank, Shawmut. The company adopted new standards for deciding which loans are approved.

A settlement by First National Bank of Vickburg, Miss., of allegations that minority borrowers were being charged higher interest rates than whites.

by CNB