SouthStar Okays NCRC Settlement

SouthStar Funding LLC has agreed to pay $500,000 to settle a complaint that its restrictive policies on funding row house loans discriminated against blacks and Hispanics.The Atlanta-based wholesaler has agreed, as part of the settlement worked out by HUD, to drop its policy of not funding loans on row houses in Baltimore and not funding row house loans in other areas when the property value is under $100,000. "SouthStar is pleased that it has reached a settlement with NCRC regarding the complaint [and] looks forward to working with NCRC to promote fair housing policies nationwide," said Toni Ward, SouthStar's vice president for compliance. The Department of Housing and Urban Development, which investigated the complaint filed by the National Community Reinvestment Coalition in March, is urging leaders to review their row house policies. "Our hope is that other mortgage companies will take note and examine their policies that impose similar restrictions," said HUD's assistant secretary for fair housing, Kim Kendrick. The NCRC has filed similar complaints against three other lenders with restrictive row house policies. SouthStar will pay $500,000 over four years to fund the NCRC's efforts to combat discrimination and educate housing counselors.