Clinton to announce record settlement in racial bias case

January 18, 1999
Web posted at: 12:55 p.m. EST (1755 GMT)

WASHINGTON (CNN) -- President Bill Clinton plans to announce on Monday that his administration has reached a record $6 billion settlement in a racial discrimination case, CNN has learned.

Administration sources said Clinton will announce the settlement made with Maryland-based Columbia National Mortgage during an event marking the birthday of civil rights leader Martin Luther King Jr.

The settlement was reportedly negotiated by the Department of Housing and Urban Development after a HUD investigation found evidence of racial bias in Columbia National's lending practices.

An administration source said the company has agreed to make $6 billion in home mortgage loans available over five years to low- and moderate-income families.

Columbia National, which operates in 28 states, has also agreed to spend $529 million on programs designed to increase homeownership among minority and poor families, sources said.

Vice President Al Gore and Washington Mayor Anthony Williams will join Clinton when he announces the settlement at Regency House in Washington, where he will meet with volunteers from his Americorps program.

Clinton has said the King holiday should focus attention on volunteer community service.

The Associated Press contributed to this report.