Every year, lenders in Kansas City quietly settle a handful of lending discrimination complaints. Typically filed by African-American or Hispanic loan applicants, the complaints go to the local office of the U.S. Department of Housing and Urban Development, which investigates and acts on the claims. Since 1990, HUD has taken 127 such complaints from loan applicants in the Kansas City area. Settlements usually satisfy everyone. Applicants often get a loan, monetary compensation or some other relief.
Investigators can move on to the next case.
And lenders can avoid an administrative hearing, possible penalties and public embarrassment. Usually, lenders admit no fault. And until recently, a frequent provision in the agreements was a confidentiality clause. Adrian Guillen's settlement had no such clause. I wanted to invest money in the community I grew up in, and they weren't willing to help me.