- Neither admitting nor denying wrongdoing, Hudson City Bancorp (NASDAQ:HCBK) will pay $33M to make DOJ and CFPB investigations over redlining go away - $27M of that will go for loan subsidy and outreach programs, and the rest is a penalty.
- The $33M is the largest-ever residential mortgage redlining settlement for the DOJ, and its the first redlining action taken by the CFPB.
- More importantly, the settlement comes just days ahead of what's expected to be the final thumbs up or thumbs down from regulators on Hudson City's long-awaited sale to M&T Bank (NYSE:MTB). The deal has been on hold for more than three years. Most expect this settlement signals a "tying up of loose ends" ahead of a green light for the merger.