{"id":51854,"date":"2023-01-13T06:42:48","date_gmt":"2023-01-13T14:42:48","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=51854"},"modified":"2023-01-13T06:42:48","modified_gmt":"2023-01-13T14:42:48","slug":"city-national-bank-will-pay-31-million-for-loan-discrimination-by-redlining-in-la-county","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=51854","title":{"rendered":"City National Bank Will Pay $31 Million for Loan Discrimination by “Redlining” in LA County"},"content":{"rendered":"

Largest Redlining Settlement Agreement in Department History<\/i><\/b><\/span><\/p>\n

LOS ANGELES<\/strong><\/span><\/p>\n

\"\"<\/p>\n

The Justice Department announced Thursday an agreement to resolve allegations that City National Bank engaged in discrimination by \u201credlining\u201d in Los Angeles County. <\/span><\/p>\n

This resolution will include over $31 million to individuals and community victims<\/span><\/p>\n

The agreement, part of the Department\u2019s nationwide Combating Redlining Initiative<\/a>\u00a0that Attorney General Merrick B. Garland launched in October 2021, represents the largest redlining settlement in its history.\u00a0<\/span><\/p>\n

City National is the largest bank headquartered in Los Angeles and among the fifty largest banks in the United States, according to officials\u00a0<\/span><\/p>\n

\"person<\/a>\u201cRedlining\u201d is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. <\/span><\/p>\n

A complaint filed in federal court today alleges that from 2017 through at least 2020, City National avoided providing mortgage lending services to majority-Black and Hispanic neighborhoods in Los Angeles County.<\/span><\/p>\n

They discouraged residents in these neighborhoods from obtaining mortgage loans.<\/span><\/p>\n

\"\"The complaint also alleges that during that time period, other banks received more than six times as many applications in majority-Black and Hispanic neighborhoods in Los Angeles County than City National each year.\u00a0<\/span><\/p>\n

In addition, City National only opened one branch in a majority-Black and Hispanic neighborhood in the past twenty years, despite having opened or acquired 11 branches during that time period. <\/span><\/p>\n

And unlike at its branches in majority-white areas, City National did not assign any employee to generate mortgage loan applications at that branch, officials stated.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cFifteen months after I vowed that the Justice Department would be aggressively stepping up our efforts to combat discriminatory practices in the housing market, we have today secured the largest redlining settlement in Department history,\u201d said Attorney General Merrick B. Garland. \u201cSo far, the Combating Redlining Initiative has secured over $75 million dollars in relief for communities that have suffered from lending discrimination.”<\/span><\/p>\n

\"\"\u201cIn the words of Dr. Martin Luther King Jr., the issue of fair housing is a \u2018moral issue.\u2019 Thus, ending redlining is a critical step to closing the widening gaps in homeownership and wealth, especially in a city as large and diverse as Los Angeles,\u201d said U.S. Attorney Martin Estrada.\u00a0<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Under the proposed consent order, which is subject to court approval, City National Bank agreed to do the following:<\/span><\/p>\n

\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Invest at least $29.5 million in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in Los Angeles County; at least $500,000 for advertising and outreach targeted toward the residents of these neighborhoods;<\/span> at least $500,000 for consumer financial education program to help increase access to credit for residents; and at least $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit.<\/span><\/p>\n

\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Open one new branch in a majority-Black and Hispanic neighborhood and evaluate future opportunities for expansion within Los Angeles County; ensure at least four mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods; and employ a full-time Community Lending Manager who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods.<\/span><\/p>\n

\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services for majority-Black and Hispanic census tracts within Los Angeles County.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 City National worked cooperatively with the Department to remedy the redlining allegations. <\/span><\/p>\n

In conjunction with this settlement, City National has announced that it is proactively taking steps to expand its lending services in other markets around the country to provide greater access to credit in communities of color, according to federal authorities.<\/span><\/p>\n

Specifically, City National is working to facilitate additional homeownership opportunities in underserved communities, including by creating a residential mortgage special purpose credit program to cover geographic areas in various locations throughout the country, including New York, Georgia, Nevada, and Tennessee. Additionally, City National is planning to launch a small business lending program that will be aimed at assisting underserved business owners in operating and growing their business.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorney Katherine Hikida of the Civil Division\u2019s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the Justice Department\u2019s Civil Rights Division handled this matter.<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Individuals in the\u00a0seven counties<\/a>\u00a0of the Central District of California may report housing discrimination by contacting the United States Attorney\u2019s Office at (213) 894-2879 or emailing\u00a0USACAC.CV-CivilRights@usdoj.gov<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Largest Redlining Settlement Agreement in Department History LOS ANGELES The Justice Department announced Thursday an agreement to resolve allegations that City National Bank engaged in discrimination by \u201credlining\u201d in Los Angeles County….<\/p>\n","protected":false},"author":1,"featured_media":51855,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3255,3],"tags":[3514],"class_list":["post-51854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-federal-court","category-u-s-department-of-justice","tag-city-national-bank"],"yoast_head":"\nCity National Bank Will Pay $31 Million for Loan Discrimination by "Redlining" in LA County<\/title>\n<meta name=\"description\" content=\"Largest Redlining Settlement Agreement in Department History LOS ANGELES The Justice Department announced Thursday an agreement to resolve allegations\" \/>\n<meta name=\"robots\" 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