In nine separate interactions recorded either with a camera or an audio devices, employees at M&T Bank's New York City loan office can be seen or heard treating the white applicants differently than the others, according to the suit. In one instance, a black candidate was told she did not have enough savings to buy a home. A white applicant with slightly lower income and credit scores and $9,000 less in savings was pre-approved for a loan. In another case, a Latina candidate was told she would qualify for a mortgage $125,000 less than the test's white candidate with lower income, poorer credit and less cash.
"Defendant's conduct, as described above, constitutes discrimination in making available residential real estate-related transactions and in the terms and conditions of such transactions on the basis of race or national origin in violation of the Fair Housing Act," the lawsuit says.
A complaint against a lender based solely on secret testing is quite unusual. Several fair housing experts could not think of another case. Because lawsuits against banks typically results from statistical disparities, whistleblowers or consumer complaints, this case could open up a new legal means of pursuing discriminatory lenders.