Besides the annual exams, regulators are required by law to consider lending patterns when a bank applies for approval of a special action, such as opening a branch or buying another bank. In the past 10 years, regulators have denied eight of 50,000 special applications because of unfair lending, according to federal agencies. Although applications are rarely denied, the law does allow for delays while regulators consider citizen challenges of a bank's record. A delayed merger can cost a bank a bundle in lost profits. Increasingly, community groups are filing such challenges.
Banks resent the pressure.
Well, we would have stayed awake until hell freezes over with that and we wouldn't have done it, and we didn't do it. Other banks have done it. Loans with lower interest rates or lower closing costs or lower down payments. Automatic second appraisals if appraisals are disputed. Community groups say these results have not come from blackmail, just good ol' American pressure.