Fair Finance Watch opposes Fifth Third-Comerica merger

"Fair Finance Watch claims that Fifth Third denied more mortgage applications from Black borrowers than it approved, while white applicants saw the opposite trend. This is disparate, the group wrote repeatedly in its filing. Fair Finance Watch also pointed to Fifth Third's regulatory history. It referenced Consumer Financial Protection Bureau actions against the bank, including the agency's order for the bank to pay $20 million in penalties and redress in 2023 related to allegations of fake accounts and forced vehicle insurance."

"The organization further criticized Fifth Third's branch closures in low- and moderate-income areas, and it accused regulators of rubber-stamping mergers involving banks with weak Community Reinvestment Act records. Lee said the Fed should extend the public comment period and hold evidentiary hearings on the merger before taking any action. The Community Reinvestment Act specifies that regulators must consider an institution's record of meeting community credit needs, the letter stated."

"On the current record, the application should not be approved. Fifth Third announced plans on Monday to acquire Comerica in an all-stock deal valued at about $10.9 billion. The transaction, pending regulatory and shareholder approvals, would expand Fifth Third's footprint in Texas and the Midwest, making it the ninth-largest bank in the country. Neither the Federal Reserve nor Fifth Third immediately responded to HousingWire's requests for comment."

Fair Finance Watch alleges that Fifth Third denied more mortgage applications from Black borrowers than it approved while white applicants experienced higher approval rates, calling the pattern disparate. The group cited Fifth Third's regulatory history, including a 2023 Consumer Financial Protection Bureau order requiring $20 million in penalties and redress related to fake accounts and forced vehicle insurance. The organization criticized branch closures in low- and moderate-income areas and accused regulators of rubber-stamping mergers despite weak Community Reinvestment Act records. The group asked the Federal Reserve to extend the public comment period and hold evidentiary hearings and asserted the merger application should not be approved. Fifth Third announced plans to acquire Comerica in an all-stock $10.9 billion deal that would expand its Texas and Midwest footprint and make it the ninth-largest U.S. bank; the transaction remains pending regulatory and shareholder approvals, and neither the Federal Reserve nor Fifth Third responded to requests for comment.

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