National Bank Settles Redlining Charges

A national bank settled CFPB, DOJ and OCC allegations of redlining under the Fair Housing Act, the Equal Credit Opportunity Act and the Consumer Financial Protection Act.

In a Complaint filed in the U.S. District Court for the Western District of Tennessee, the DOJ and CFPB alleged that from 2014 to 2018 the bank engaged in a pattern of redlining that included avoiding providing home loans and other mortgage services and discouraging applications for credit for properties located in majority-Black and Hispanic neighborhoods. The Complaint alleged that the bank:

• avoided locating branches in majority-Black and Hispanic neighborhoods;
• avoided assigning loan officers to majority-Black and Hispanic neighborhoods;