PARAMUS, N.J., Sept. 24, 2015 /PRNewswire/ -- Hudson City
Bancorp, Inc. (NASDAQ: HCBK) (the "Company"), the holding company
for Hudson City Savings Bank (the "Bank"), announced today that the
Bank has entered into a settlement agreement (the "Agreement") with
the U.S. Department of Justice ("DOJ") and the Consumer Financial
Protection Bureau ("CFPB") related to certain alleged violations of
the Fair Housing Act and Equal Credit Opportunity Act. The
settlement was the result of investigations by the DOJ and CFPB
into Hudson City's lending
practices in majority-Black and Hispanic areas in its footprint
mostly outside of New Jersey
during the years 2009 through 2013. The DOJ and CFPB asserted
that the Bank failed to originate enough loans in these areas when
compared to a group of other market participants using statistical
analysis of market data.
Although Hudson City disagrees
with the statistical analysis of loans relied upon by the DOJ and
CFPB as the principal basis for its claims as well as the agencies'
conclusions from their investigations, the Bank has agreed to offer
$25 million in subsidies to support
home lending in minority areas and to implement a number of
outreach and educational programs to residents of these
communities. In the Bank's view, the Agreement will help
supplement the Bank's strong record of serving the needs of all
communities within its geographic reach in a fair and honest manner
for over 150 years. Indeed, due to its unique structure as a
portfolio lender thrift institution and its origination product
limitations, Hudson City
historically relied heavily on purchases of loans from other
originators to minority borrowers in the very census tracts that
form the basis of the allegations, and kept such loans on its
balance sheet in order to fulfill its Community Reinvestment Act
and fair lending responsibilities. In the Bank's view,
providing additional liquidity to originators active in these areas
through loan purchases is critical to meeting the credit needs of
these communities.
The Bank decided to settle this matter, which includes payment
of a $5.5 million civil penalty, to
avoid litigation with these agencies so that it can focus on
continuing to provide fair credit services to its customers and
working to complete its pending merger with M&T Bank
Corporation ("M&T"). If the merger is approved by the
Board of Governors of the Federal Reserve and the New York State Department of Financial
Services, the combined company will provide a wider array of
banking products and services across a broad geographic footprint
with greater minority populations. As required under its
Merger Agreement with M&T, the Company provided the Agreement
to M&T for review and received M&T's consent prior to
entering into the Agreement.
"The Bank has been serving its customers since 1868. We
have a longstanding commitment to serving the needs of customers in
our geographic footprint and of operating with the integrity and
responsiveness to the needs of the communities that we serve.
We believe we have created a very strong record of providing
responsible credit to the residents of a wide market area without
succumbing to the temptations of subprime lending and predatory
products that so many lenders engaged in. Our origination and
servicing record is strong, and we remain committed to fair and
responsible lending practices," said Denis
J. Salamone, Chairman and Chief Executive Officer of the
Company. "Although we do not agree with the DOJ's and CFPB's
claims against the Bank, we agree, and have always believed, that
there should be no discrimination based on race, national origin,
gender or age in obtaining a loan."
About Hudson City Bancorp, Inc.
Hudson City Bancorp is a Delaware corporation organized in 1999 and
serves as the holding company of its only subsidiary, Hudson City
Savings Bank. Hudson City Savings Bank conducts its operations out
of its corporate offices in Paramus in Bergen
County, New Jersey and through 135 banking offices in the
New York metropolitan area.
Forward-Looking Statements
This release may contain certain "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 that are based on certain assumptions and describe future
plans, strategies and expectations of Hudson City Bancorp,
Inc. Such forward-looking statements may be identified by the
use of such words as "may," "believe," "expect," "anticipate,"
"should," "plan," "estimate," "predict," "continue," "probable,"
and "future" or the negative of these terms or other comparable
terminology. Examples of forward-looking statements include,
but are not limited to, estimates with respect to the financial
condition, results of operations and business of Hudson City
Bancorp, Inc. and Hudson City Bancorp, Inc.'s strategies, plans,
objectives, expectations, and intentions, including the Merger and
its Strategic Plan, and other statements contained in this release
that are not historical facts. Hudson City Bancorp, Inc.'s
ability to predict results or the actual effect of future plans or
strategies, including the Merger and the implementation of the
Strategic Plan, is inherently uncertain and actual results and
performance could differ materially from those contemplated or
implied by these forward-looking statements. They can be affected
by inaccurate assumptions Hudson City Bancorp, Inc. might make or
by known or unknown risks and uncertainties. Factors that could
cause assumptions to be incorrect include, but are not limited to,
changes in interest rates, general economic conditions,
legislative, regulatory and public policy changes, Hudson City
Bancorp Inc.'s ability to successfully implement the Strategic Plan
initiatives, further delays in closing the Merger and the ability
of Hudson City Bancorp, Inc. or M&T Bank Corporation to obtain
regulatory approvals and meet other closing conditions to the
Merger. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not
be placed on such statements. For a summary of important
factors that could affect Hudson City Bancorp, Inc.'s
forward-looking statements, please refer to Hudson City Bancorp,
Inc.'s filings with the Securities and Exchange Commission
available at www.sec.gov. Hudson City Bancorp, Inc. does not
intend to update any of the forward-looking statements after the
date of this release or to conform these statements to actual
events.
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SOURCE Hudson City Bancorp, Inc.