The City National Bank has agreed to a $90 million settlement to address decades-old discriminatory practices against people of color, the U.S. Department of Justice announced on Monday.
The Department of Justice revealed on Monday that City National Bank has agreed to a $90 million settlement to address its discriminatory practices of “redlining,” which have been in effect since the 1930s. The settlement is the result of a civil rights investigation that began in 2015 and is the largest ever reached in a redlining case.
The investigation found that the bank had systematically denied services to people of color in predominantly African American and Hispanic neighborhoods. The Department of Justice’s complaint alleged that the bank had refused to provide mortgage loans to people of color in majority-minority neighborhoods and had failed to serve the credit needs of majority-minority neighborhoods.
In addition to the monetary settlement, City National Bank will invest $50 million in mortgage lending and other services to the communities it was found to have discriminated against. The bank will also provide $20 million for consumer relief, including down payment assistance, closing cost assistance, and credit repair services.
The agreement, which is subject to court approval, also requires the bank to open two new branches in majority-minority neighborhoods and to offer consumer-friendly banking products to customers in those areas.
The U.S. Department of Justice has reached a $90 million settlement with City National Bank to address discriminatory “redlining” practices against people of color that have been in place for decades. The settlement follows a civil rights investigation that began in 2015 and is the largest ever reached in a redlining case.
The investigation found that the bank had systematically denied services to people of color in predominantly African American and Hispanic neighborhoods, refusing to provide mortgage loans and failing to serve the credit needs of majority-minority neighborhoods.
In addition to the monetary settlement, City National Bank will invest $50 million in mortgage lending and other services to the communities it was found to have discriminated against. The bank will also provide $20 million for consumer relief, including down payment assistance, closing cost assistance, and credit repair services. Two new branches will be opened in majority-minority neighborhoods, and consumer-friendly banking products will be offered to customers in those areas. The agreement is subject to court approval.
